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Problem $8-6$A $($Algo$)$ Disposal of plant assets LO C$1,$ P$1,$ P$2$

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$[$The following information applies to the questions displayed below.$]$

Onslow Company purchased a used machine for $$192,000$ cash on January $2.$ On January $3,$ Onslow paid $$10,000$ to wire electricity to the machine. Onslow paid an additional $$2,000$ on January $4$ to secure the machine for operation. The machine will be used for six years and have a $$23,040$ salvage value. Straight$-$line depreciation is used. On December $31,$ at the end of its fifth year in operations, it is disposed of$.$

Problem $8-6$A $($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.