Question

Required information Problem 10-6A Disposal of plant assets LO C1, P1, P2 The following information applies to the questions displayed below.] Onslow Co. purchases a used machine for $192,000 cash on January 2 and readies it for use the next day at a $10,000 cost. On January 3, it is installed on a required operating platform costing $2,000, and it is further readied for operations. The company predicts the machine will be used for six years and have a $23,040 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 10-6A Part 1 Required: 1. Prepare journal entries to record the machine's purchase and the costs to ready and install it. Cash is paid for all costs incurred. View transaction list Journal entry worksheet 2 3 Record the purchase of a used machine for $192,000 cash. Note: Enter debits before credits. Date General Journal Debit Credit Jan 02 Record entry Clear entry View general journal

Answer 1

Joynal entry 1. of machine for $192,000 cach. Purchase and other used cost General Journal Date | Debit , credit 5719200 9192,010 Jan 2 Machine To cash C Purchase used machine for cash) Jana T $19ow loow Machine To cash ( Expenses - reoides) paid for machinery $20w ganz 201 Machine. To cash I c Installation charges paid) Answ12:- Debit , crecht po 1 30100 39160 pate O Particulars fiöst year of operation Depreciation ale To Machineoy alc | 1920w + loow t zow)= 2040W - 23040/6 e depreciation charged)

930, 16v a 939,160 . At the end at disposal year, Depreciation Alc Rol . To machinery Alc C Depreciation charged) Answers . Date Accumulated depreciateen in sYearsa 30,160 X 5 = 150,80 . Particulars i nebit coedit Cash Alc By: $21500 Accumulated depreciation ofc of $150.800 Lossen sale of machinery Arc R $ 31,7 To machinery 204 ow $8 Gou 9150,800 Cash Alc Acceimulated depreciation AC Do To machinery Arc To Gainlon sale of machinery 2oyou $32,80 - Protit 3 . I Cash Arc Accumulated depreciation Alc loss in fire Arc - To Machinery Arc $3200 Bo | $150,80 R 21200 gayow