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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 $21,500 cash; (b) it is sold for $86,000 cash; and (c) it is destroyed in a fire and the insurance company pays $32,000 cash to settle the loss claim. View transaction list Journal entry worksheet 1 2 3 > Record the sale of the used machine for $21,500 cash. Note: Enter debits before credits. Date General Journal Credit Dec 31 Cash Debit 21,500 192,000 23,040 Accumulated depreciationMachinery Loss on sale of machinery Machinery 236,540 Saved 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 $21,500 cash; (b) it is sold for $86,000 cash; and (C) it is destroyed in a fire and the insurance company pays $32,000 cash to settle the loss claim. View transaction list Journal entry worksheet Record the sale of the used machine for $86,000 cash. Note: Enter debits before credits. Date Debit Credit Dec 31 86,000 General Journal Cash Accumulated depreciation-Machinery Gain on sale of machinery Machinery 192,000 Saved 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 $21,500 cash; (b) it is sold for $86,000 cash; and (c) it is destroyed in a fire and the insurance company pays $32,000 cash to settle the loss claim. View transaction list Journal entry worksheet Record the insurance settlement received of $32,000 resulting from the total destruction of the machine in a fire. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 - 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 2 2. Prepare journal entries to record depreciation of the machine at December 31. View transaction list Journal entry worksheet Record the year of disposal year-end adjusting entry for the depreciation expense of the used machine. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31

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