THS IS A PROBLEM WITH THREE PARTS TO COMPLETE IT ALTOGETHER. PLEASE MODEL YOUR RESPONSE LIKE A TABLE TO MAKE IT EASIER TO UNDERSTAND :)

PART I:

1) Record the purchase of a used machine for $240,000 cash.

2) Record the costs of $10,000 incurred on the used machine.

3) Record the cost of $2,000 for an operating platform.

PART II:

1) Record the first year year-end adjusting entry for the depreciation expense of the used machine

2) Record the year of disposal year-end adjusting entry for the depreciation expense of the used machine.

PART III:

1) Record the sale of the used machine for $22,000 cash.

2) Record the sale of the used machine for $88,000 cash.

3) Record the insurance settlement received of $32,500 resulting from the total destruction of the machine in a fire.

Required Information Problem 8-6A Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.) Onslow Co. purchased a used machine for $240,000 cash on January 2 On January 3, Onslow paid $10,000 to wire electricity to the machine and an additional $2,000 to secure it in place. The machine will be used for six years and have a $28,800 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 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. View transaction list Journal entry worksheet Record the purchase of a used machine for $240,000 cash. Note: Enter debits before credits. Date General Journal Debit Credit Jan 02 Record entry Clear entry View general journal Required Information Problem 8-6A Disposal of plant assets LO C1, P1, P2 {The following information applies to the questions displayed below.] Onslow Co. purchased a used machine for $240,000 cash on January 2. On January 3, Onslow paid $10,000 to wire electricity to the machine and an additional $2,000 to secure it in place. The machine will be used for six years and have a $28,800 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 Part 2 2. Prepare journal entries to record depreciation of the machine at December 31. View transaction list Journal entry worksheet Record the first year year-end adjusting entry for the depreciation expense of the used machine. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal Required Information Problem 8-6A Disposal of plant assets LO C1, P1, P2 [The following Information applies to the questions displayed below.) Onslow Co. purchased a used machine for $240,000 cash on January 2. On January 3, Onslow paid $10,000 to wire electricity to the machine and an additional $2,000 to secure it in place. The machine will be used for six years and have a $28,800 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 Part 3 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) It is sold for $22,000 cash; (b) It is sold for $88,000 cash; and (c) It is destroyed in a fire and the insurance company pays $32,500 cash to settle the loss claim. View transaction list Journal entry worksheet 1 2 3 Record the insurance settlement received of $32,500 resulting from the total destruction of the machine in a fire. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 Record entry Clear entry View general journal