Question: Why is this wrong and how do I get the correct answer? [The following information applies to the questions displayed below.] Onslow Company purchased a

Why is this wrong and how do I get the correct answer?Why is this wrong and how do I get the correct answer?[The following information applies to the questions displayed below.] Onslow Company purchaseda used machine for $240,000 cash on January 2. On January 3,

[The following information applies to the questions displayed below.] Onslow Company purchased a used machine for $240,000 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 $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. 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. Answer is complete and correct. No Date General Journal Debit Credit 1 January 02 240.000 Machinery Cash 240,000 2 January 03 8,000 Machinery Cash loo 8,000 3 January 04 1,600 Machinery Cash 1,600 2. Prepare journal entries to record depreciation of the machine at December 31. No Answer is complete and correct. General Journal Depreciation expense-Machinery Accumulated depreciationMachinery Date December 31 Credit Debit 36,800 1 36,800 2 December 31 36,800 Depreciation expense-Machinery Accumulated depreciationMachinery 36,800 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. Answer is not complete. No Date General Journal Debit Credit 1 December 31 Cash Accumulated depreciation-Machinery Loss on sale of machinery Machinery 21,500 184,000 44,100 249,600 2 December 31 Cash Accumulated depreciation-Machinery Gain on sale of machinery Machinery OO OOOO 86,000 184,000 14,400 249,600

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!