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[The following information applies to the questions displayed below.] Onslow Company purchased a used machine for $192,000 cash on January 2. On January 3, Ons electricity to the machine. Onslow paid an additional $1,200 on January 4 to secure the machine machine will be used for six years and have a $23,040 salvage value. Straight-line depreciation is at the end of its fifth year in operations, it is disposed of. oblem 8-6A (Algo) Part 2 Prepare journal entries to record depreciation of the machine at December 31.

[The following information applies to the questions displayed below.] Onslow Company purchased a used machine for $192,000 cash on January 2. On January 3, Ons electricity to the machine. Onslow paid an additional $1,200 on January 4 to secure the machine machine will be used for six years and have a $23,040 salvage value. Straight-line depreciation is at the end of its fifth year in operations, it is disposed of. oblem 8-6A (Algo) Part 2 Prepare journal entries to record depreciation of the machine at December 31.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Do journal entry 1-2 please and thank you 

**Transcription for Educational Website:** **Problem 8-6A (Algo) Disposal of Plant Assets LO C1, P1, P2** *The following information applies to the questions displayed below:* Onslow Company purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid $6,000 to wire electricity to the machine. Onslow paid an additional $1,200 on January 4 to secure the machine for operation. The machine will be used for six years and have a $23,040 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. **Problem 8-6A (Algo) Part 2** 2. Prepare journal entries to record depreciation of the machine at December 31. **Journal Entry Worksheet** - **Instructions:** Record the first year year-end adjusting entry for the depreciation expense of the used machine. *(Note: Enter debits before credits.)* | Date | General Journal | Debit | Credit | |------|-----------------|-------|--------| | | | | | **Explanation:** The "Journal Entry Worksheet" is designed for students to input the necessary journal entries regarding depreciation. The instruction prompt reminds users that debits should be entered before credits. The table is divvied into sections that allow for input of the date, the account affected, and respective debit or credit amounts. The worksheet facilitates an understanding of journal entry preparation, specifically adjusting entries for depreciation in this scenario. The input fields help track financial changes according to accounting principles taught in the module.
Transcribed Image Text:**Transcription for Educational Website:** **Problem 8-6A (Algo) Disposal of Plant Assets LO C1, P1, P2** *The following information applies to the questions displayed below:* Onslow Company purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid $6,000 to wire electricity to the machine. Onslow paid an additional $1,200 on January 4 to secure the machine for operation. The machine will be used for six years and have a $23,040 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. **Problem 8-6A (Algo) Part 2** 2. Prepare journal entries to record depreciation of the machine at December 31. **Journal Entry Worksheet** - **Instructions:** Record the first year year-end adjusting entry for the depreciation expense of the used machine. *(Note: Enter debits before credits.)* | Date | General Journal | Debit | Credit | |------|-----------------|-------|--------| | | | | | **Explanation:** The "Journal Entry Worksheet" is designed for students to input the necessary journal entries regarding depreciation. The instruction prompt reminds users that debits should be entered before credits. The table is divvied into sections that allow for input of the date, the account affected, and respective debit or credit amounts. The worksheet facilitates an understanding of journal entry preparation, specifically adjusting entries for depreciation in this scenario. The input fields help track financial changes according to accounting principles taught in the module.
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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