1. Make a journal entry to record the sale of the used machine for $25,000...
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Accounting
1. Make a journal entry to record the sale of the used machine for $25,000 cash
2. Make a journal entry to record the sale of the used machine for $100,000 cash.
3. Make a journal entry to record the insurance settlement of $35,500 resulting from the total destruction of the machine in a fire.
Onslow Co. purchases a used machine for $288,000 cash on January 2 and readies it for use the next day at a $8,000 cost. On January 3, it is installed on a required operating platform costing $1,600, and it is further readied for operations. The company predicts the machine will be used for six years and have a $34,560 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of Problem 8-6A Part 3 . Prepare journal entries to record the machine's disposal under each of the following separate assumptions: (a) it is sold for $25,000 cash; (b) it is sold for $100,000 cash; and (c) it is destroyed in a fire and the insurance company pays $35,500 cash to settle the loss claim
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