The following information applies to the questions displayed below.] Onslow Co. purchased a used machine...
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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 $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 $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.
3. Prepare journal entries to record the machines disposal under each separate situation: (a) it is sold for $21,000 cash; (b) it is sold for $84,000 cash; and (c) it is destroyed in a fire and the insurance company pays $31,500 cash to settle the loss claim.
Journal entry Qs:
1. Record the sale of the used machine for $21,000 cash.
2. Record the sale of the used machine for $84,000 cash.
3.Record the insurance settlement received of $31,500 resulting from the total destruction of the machine in a fire.
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