Question

help! everything is correct except the ones missing.

Check my work 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 $8,000 cost. On January 3, it is installed on a required operating platform costing $1,600, 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 3 3. Prepare journal entries to record the machine's disposal under each of the following separate assumptions: 1. Record the sale of the used machine for $24,500 cash. 2. Record the sale of the used machine for $98,000 cash. 3. Record the insurance settlement received of $35,000 resulting from the total destruction of the machine in a fire. < Prev 4 of 4 Next

Answer 1

Solution:

D F G 1 2 3 4 Journal Entries 5 ansaction Debit Credit Particulars $24,500 $148,800 $28,300 Cash Dr 6 (a) Accumulated Depreciation Dr [(201600-23040) *5/6] Loss on sale of Machinery Dr To Machinery 7 $201,600 10 $98,000 $148,800 Cash Dr Accumulated Depreciation Dr 11 (b) 12 $201,600 $45,200 13 To Machinery 14 To Gain on sale of Machinery 15 $35,000 $148,800 $17,800 16 Cash Dr (c) Accumulated Depreciation Dr Loss from Fire Dr 17 18 $201,600 19 To Machinery 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 Sheet248 (6) Sheet551 Sheet553 Sheet554 et550