Question

Onslow Co. purchased a used machine for $240,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine and an additional $1,600 to secure it in place. The machine will be used for six years and have a $28,800 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of.

Journal entry worksheet 2 Record the first year year-end adjusting entry for the depreciation expense of the used machine. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 Record entry Clear entry View general journal Journal entry worksheet < 1 Record the year of disposal year-end adjusting entry for the depreciation expense of the used machine. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal

Answer 1

Answer:

Date	Accounts titles and Explanation	Debit ($)	Credit ($)
Dec-31	Depreciation Expense	36,800
	Accumulated Depreciation -Machinery		36,800
	(To Record the first year year-end adjusting entry for the depreciation expense)
	Cost of machine = 240,000+8,000+1,600= $249,600
	Depreciation (Straight-Line method) = Cost - Salvage / no of years
	= (249,600-28,800)/6 yr =$36,800
Dec-31	Depreciation Expense	36,800
	Accumulated Depreciation -Machinery		36,800
	( To Record the year of disposal year-end adjusting entry for the depreciation expense)