Question

Required information [The following information applies to the questions displayed below. Onslow Co. purchases a used machine for $240,000 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 $28,800 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.

Answer 1

rate positively .. let me know if you need any clarification..

Date	Particular	Debit	Credit
2-Jan	Macinery a/c	$240,000
	To Cash		$240,000
	(being machinery purchased)
3-Jan	Macinery a/c	$8,000
	To Cash		$8,000
	(being expenses paid for machinery readies)
3-Jan	Macinery a/c	$1,600
	To Cash		$1,600
	(being installation charges paid)