WEEK FIVE

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.

Required:
1.	Prepare journal entries to record the machine's purchase and the costs to ready and install it. Cash is paid for all costs incurred.

No	Date	General Journal	Debit	Credit
1	Jan 02	Machinery	192,000
1		Cash		192,000
2	Jan 03	Machinery	8,000
2		Cash		8,000
3	Jan 03	Machinery	1,600
3		Cash		1,600

2.	Prepare journal entries to record depreciation of the machine at December 31.

(a) Its first year in operations.

No	Date	General Journal	Debit	Credit
1	Dec 31	Depreciation expenseMachinery
1		Accumulated depreciationMachinery

(b ) The year of its disposal.

No	Date	General Journal	Debit	Credit
1	Dec 31	Depreciation expenseMachinery
1		Accumulated depreciationMachinery

3.	Prepare journal entries to record the machine's disposal under each of the following separate assumptions:

(a)	It is sold for $21,500 cash.

No	Date	General Journal	Debit	Credit
1	Dec 31	Cash
1		Loss on sale of machinery
1		Accumulated depreciationMachinery
1		Machinery

(b)	It is sold for $86,000 cash.

No	Date	General Journal	Debit	Credit
1	Dec 31	Cash
1		Accumulated depreciationMachinery
1		Machinery
1		Gain on sale of machinery

(c)	It is destroyed in a fire and the insurance company pays $32,000 cash to settle the loss claim.

No	Date	General Journal	Debit	Credit
1	Dec 31	Cash
1		Accumulated depreciationMachinery
1		Loss from fire
1		Machinery

PLEASE ANSWER THE QUESTIONS CORRECTLY AND FULLY THIS TIME AND FILL IN THE BLANKS!!!