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 $288,000 cash on January 2. On January 3, Onslow paid $6,000 to wire electricity to the machine and an additional $1,200 to secure it in place. The machine will be used for six years and have a $34,560 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 1 Required: 1. Prepare journal entries to record the machine's purchase and the costs to ready it for use. Cash is paid for all costs incurred, View transaction list Journal entry worksheet 2 3 Record the purchase of a used machine for $288,000 cash. Note: Enter debts before credits 1 2 3 of 3 !! Next > 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 first year year-end adjusting entry for the depreciation expense of the used machine. Note: Enter debits before credits General Journal Debit Credit Date Dec 31 Record entry Clear entry View general journal oblem 8-6A Part 3 Prepare journal entries to record the machine's disposal under each separate situation: () 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