70.2K

Verified Solution

Link Copied!

Explain with steps

Options:

• Accumulated amortization
• Accumulated depletion
• Accumulated depreciationMachinery
• Amortization expense
• Building
• Cash
• Depletion expense
• Depreciation expense
• Gain on sale of machinery
• Goodwill
• Impairment loss
• Land
• Land improvements
• Leasehold improvements
• Loss from fire
• Loss on exchange of assets
• Loss on sale of machinery
• Machinery
• Mineral deposit
• Ore mine
• Prepaid rent
• Rent expense
• Repairs expense
• Vehicles

Required information Problem 8-6A Disposal of plant assets LO C1, P1, P2 (The following information applies to the questions displayed below.) Onslow Co. purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine and an additional $1,600 to secure it in place. 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 Part 3 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $22,500 cash; (b) it is sold for $90,000 cash; and (c) it is destroyed in a fire and the insurance company pays $33,000 cash to settle the loss claim. View transaction list Journal entry worksheet 3 > Record the sale of the used machine for $22,500 cash. Note: Enter debits before credits. Date General Journal Dec 31 Debit Credit Required information Problem 8-6A Disposal of plant assets LO C1, P1, P2 (The following information applies to the questions displayed below.) Onslow Co. purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine and an additional $1,600 to secure it in place. 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 Part 3 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $22,500 cash; (b) it is sold for $90,000 cash; and (it is destroyed in a fire and the insurance company pays $33,000 cash to settle the loss claim. View transaction list Journal entry worksheet 2 3 > Record the sale of the used machine for $90,000 cash. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 Required information Problem 8-6A Disposal of plant assets LO C1, P1, P2 (The following information applies to the questions displayed below.) Onslow Co. purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine and an additional $1,600 to secure it in place. 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 Part 3 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $22,500 cash; (b) it is sold for $90,000 cash; and (c) it is destroyed in a fire and the insurance company pays $33,000 cash to settle the loss claim. View transaction list Journal entry worksheet

Answer & Explanation Solved by verified expert

See Answer