Question

Required Information 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 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 Record the purchase of a used machine for $192,000 cash. Note: Enter debits before credits. Date General Journal Debit Credit < Prey 25 26 27 of 27 1 Next >

Answer 1

Date Particular Debit Credit Jan-02 Machinery $192,000 Cash $192,000 (Being machinery purchased) Jan-03 Machinery $10,000 Cash $10,000 (Being expenses paid for machinery readies) Jan-03 Machinery $2,000 Cash $2,000 (Being installation charges paid)