Question

Chapter & Hw 3 0 Required information Problem 8-6A Disposal of plant assets LO C1, P1, P2 The folowing information applies to the questions displayed below Onslow Co purchases a used machine for $288.000 cash on January 2 and readies n for use the next day at a SR000 cost. On January 3, it is installed on a required operating platform costing $1,600, and it s further readed for operations The company predicts the machine will be uned for six years and have a $34.60 saoage value Deprecianon is to be changed on a straight line basis. On December 3t. at the end of its fifth year in operations, t s dsposed of Problem 8-6A Pert 2 2 Prepare journal entries to record deprecation of the machine af December a Journal entry worksheet ecord the ft yer year end adjunting eny for the depreciation expense of ateway

Answer 1

	Cost of machinery	297600		=288000+8000+1600
2
a
		Debit	Credit
Dec. 31	Depreciation expense—Machinery	43840		=(297600-34560)/6
	Accumulated depreciation—Machinery		43840
b
Dec. 31	Depreciation expense—Machinery	43840		=(297600-34560)/6
	Accumulated depreciation—Machinery		43840