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Required information (The following information applies to the questions displayed below.) Onslow Co. purchased a...

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Accounting

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Required information (The following information applies to the questions displayed below.) Onslow Co. purchased a used machine for $240,000 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 $28,800 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $20,000 cash: () it is sold for $80,000 cash; and (c) it is destroyed in a fire and the insurance company pays $30,500 cash to settle the loss claim No Date Credit 1 Dec 31 Answer is complete but not entirely correct. General Journal Debit Cash 20.000 Accumulated depreciation Machinery 219.2003 Loss on sale of machinery 58.400 Machinery 207600 2 Dec 31 30.000 210,200 Cash Accumulated depreciation Machinery Machinery Gain on sale of machinery 00 297 600 1 600 3 Dec 31 Cash Accumulated depreciation Machinery Loss from fire Machinery 000 30,500 219,200 47.900 3 % 297,600

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