Question

Required information The following information applies to the questions displayed below.) 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 Required: 1. Prepare journal entries to record the machine's purchase and the costs to ready it for use. Cash is paid for all costs incurred. View transaction list Journal entry worksheet < 1 2 3 Record the purchase of a used machine for $240,000 cash. Note: Enter debits before credits General Journal Debit Credit Date Jan 02

Answer 1

Date	General Journal	Debit	Credit
Jan-02	Machinery	240,000.00
	Cash		240,000.00
Jan-03	Machinery	8,000.00
	Cash		8,000.00
Jan-03	Machinery	1,600.00
	Cash		1,600.00