! Required information Problem 8-6A (Algo) Disposal of plant assets LO C1, P1, P2 [The following...

 
 
 
 
 
 
 

 

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! Required information Problem 8-6A (Algo) Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.] Onslow Company purchased a used machine for $288,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine. Onslow paid an additional $1,600 on January 4 to secure the machine for operation. The machine will be used for six years and have a $34,560 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. Problem 8-6A (Algo) Part 1 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. Required information View transaction list Journal entry worksheet < 1 2 3 Record the purchase of a used machine for $288,000 cash. Note: Enter debits before credits. Date January 02 General Journal Debit Credit Record entry Clear entry View general journal > Required information View transaction list Journal entry worksheet < 1 2 3 Record the costs of $8,000 incurred on the used machine. Note: Enter debits before credits. Date January 03 General Journal Debit Credit View general journal Record entry Clear entry > I Required information View transaction list Journal entry worksheet < 1 2 3 Record the cost of $1,600 for an operating platform. Note: Enter debits before credits. Date January 04 General Journal Debit Credit Record entry Clear entry View general journal Problem 8-6A (Algo) Part 2 2. Prepare journal entries to record depreciation of the machine at December 31. View transaction list Journal entry worksheet 1 2 Record the first year year-end adjusting entry for the depreciation expense of the used machine. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Problem 8-6A (Algo) Part 2 2. Prepare journal entries to record depreciation of the machine at December 31. View transaction list Journal entry worksheet 1 2 Record the year of disposal year-end adjusting entry for the depreciation expense of the used machine. Note: Enter debits before credits. Date December 31 General Journal Debit Credit 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $21,500 cash and (b) it is sold for $86,000 cash. View transaction list Journal entry worksheet 1 2 Record the sale of the used machine for $21,500 cash. Note: Enter debits before credits. Date December 31 General Journal Debit Credit 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $21,500 cash and (b) it is sold for $86,000 cash. View transaction list Journal entry worksheet < 1 2 Record the sale of the used machine for $86,000 cash. Note: Enter debits before credits. Date December 31 General Journal Debit Credit ! Required information Problem 8-6A (Algo) Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.] Onslow Company purchased a used machine for $288,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine. Onslow paid an additional $1,600 on January 4 to secure the machine for operation. The machine will be used for six years and have a $34,560 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. Problem 8-6A (Algo) Part 1 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. Required information View transaction list Journal entry worksheet < 1 2 3 Record the purchase of a used machine for $288,000 cash. Note: Enter debits before credits. Date January 02 General Journal Debit Credit Record entry Clear entry View general journal > Required information View transaction list Journal entry worksheet < 1 2 3 Record the costs of $8,000 incurred on the used machine. Note: Enter debits before credits. Date January 03 General Journal Debit Credit View general journal Record entry Clear entry > I Required information View transaction list Journal entry worksheet < 1 2 3 Record the cost of $1,600 for an operating platform. Note: Enter debits before credits. Date January 04 General Journal Debit Credit Record entry Clear entry View general journal Problem 8-6A (Algo) Part 2 2. Prepare journal entries to record depreciation of the machine at December 31. View transaction list Journal entry worksheet 1 2 Record the first year year-end adjusting entry for the depreciation expense of the used machine. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Problem 8-6A (Algo) Part 2 2. Prepare journal entries to record depreciation of the machine at December 31. View transaction list Journal entry worksheet 1 2 Record the year of disposal year-end adjusting entry for the depreciation expense of the used machine. Note: Enter debits before credits. Date December 31 General Journal Debit Credit 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $21,500 cash and (b) it is sold for $86,000 cash. View transaction list Journal entry worksheet 1 2 Record the sale of the used machine for $21,500 cash. Note: Enter debits before credits. Date December 31 General Journal Debit Credit 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $21,500 cash and (b) it is sold for $86,000 cash. View transaction list Journal entry worksheet < 1 2 Record the sale of the used machine for $86,000 cash. Note: Enter debits before credits. Date December 31 General Journal Debit Credit

Answer rating: 100% (QA)

Heres the journal entry to record the costs of 8000 incur... View the full answer