SavedProblem 10-6A Disposal of plant assets LO C1, P1, P2[The following information applies to the questions displayed below.]Onslow Co. purchases a used machine for $288,000 cash on January 2 and readies it for use the next day at a $8,000cost. 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 $34,560 salvage value. Depreciation is to becharged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of.roblem 10-6A Part 3Prepare journal entries to record the machine's disposal under each of the following separate assumptions:1. Record the sale of the used machine for $21,000 cash.2. Record the sale of the used machine for $84,000 cash.3. Record the insurance settlement received of $31,500 resulting from the total destruction of the machine in a fire.View transaction listJournal entry worksheet<>23Record the sale of the used machine for $21,000 cash.Note: Enter debits before credits.DebitCreditGeneral JournalDate21,000Dec 31219,20067,000Accumulated depreciation-MachineryLoss on sale of machineryMachinery297,600

Journal is the book of original entry in which financial transactions of business are recorded…

Problem 10-6A Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.] Onslow Co. purchases a used machine for $288,000 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 $34,560 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. blem 10-6A Part 3 repare journal entries to record the machine's disposal under each of the following separate assumptions: 1. Record the sale of the used machine for $21,000 cash. E. Record the sale of the used machine for $84,000 cash. E. Record the insurance settlement received of $31,500 resulting from the total destruction of the machine in a fire.

Problem 10-6A Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.] Onslow Co. purchases a used machine for $288,000 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 $34,560 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. blem 10-6A Part 3 repare journal entries to record the machine's disposal under each of the following separate assumptions: 1. Record the sale of the used machine for $21,000 cash. E. Record the sale of the used machine for $84,000 cash. E. Record the insurance settlement received of $31,500 resulting from the total destruction of the machine in a fire.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter10: Long-lived Tangible And Intangible Assets

Section: Chapter Questions

Problem 29P

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