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Onslow Co. purchased a used machine for $288.000 cash on January 2. On January 3,...

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Accounting

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Onslow Co. purchased a used machine for $288.000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine and an additional $1600 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 3 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $20,500 cash: (b) it is sold for $82,000 cash; and (cit is destroyed in a fire and the insurance company pays $31.000 cash to settle the loss claim. Journal entry worksheet 1 2 3 3 Record the sale of the used machine for $20,500 cash. Note: Enter debits before credits. Date Debit Credit Dec 31 20,500 General Journal Cash Accumulated depreciation-Machinery Loss on sale of machinery Machinery Record entry Clear entry View general journal CO Record the insurance settlement received of $31,000 resulting from the total destruction of the machine in a fire. Note: Enter debits before credits. Date General Journal Credit Dec 31 Debit 31,000 Cash Accumulated depreciation-Machinery Loss from fire Machinery Record entry Clear entry View general Journal

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