Question
In: Accounting
Onslow Co. purchased a used machine for $288,000 cash on January 2. On January 3, Onslow...
Onslow Co. purchased a used machine for $288,000 cash on January 2. On January 3, Onslow paid $6,000 to wire electricity to the machine and an additional $1,200 to secure it in place. The machine will be used for six years and have a $34,560 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of.
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.
2. Prepare journal entries to record depreciation
of the machine at December 31.
3. Prepare journal entries to record the machine’s
disposal under each separate situation: (a) it is sold for
$23,500 cash; (b) it is sold for $94,000 cash; and
(c) it is destroyed in a fire and the insurance company
pays $34,000 cash to settle the loss claim.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Train Co. purchased a used machine for $288,000 cash on January 2. On January 3, Onslow...
Train Co. purchased a used machine for $288,000 cash on January
2. On January 3, Onslow paid $8,000 to wire electricity to the
machine and an additional $1,600 to secure it in place. The machine
will be used for six years and have a $34,560 salvage value.
Straight-line depreciation is used. On December 31, at the end of
its fifth year in operations, it is disposed of.
Prepare journal entries to record the machine's purchase and the
costs to ready...
Onslow Co. purchases a used machine for $288,000 cash on January 2 and readies it for...
Onslow Co. purchases a used machine for $288,000 cash on January
2 and readies it for use the next day at a $10,000 cost. On January
3, it is installed on a required operating platform costing $2,000,
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...
Onslow Co. purchased a used machine for $240,000 cash on January 2. On January 3, Onslow...
Onslow Co. purchased a used machine for $240,000 cash on January
2. On January 3, Onslow paid $6,000 to wire electricity to the
machine and an additional $1,200 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.
Required:
1. Prepare journal entries to record the machine's
purchase and the costs...
Onslow Co. purchased a used machine for $240,000 cash on January 2. On January 3, Onslow...
Onslow Co. purchased a used machine for $240,000 cash on January
2. On January 3, Onslow paid $6,000 to wire electricity to the
machine and an additional $1,200 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.
3. Prepare journal entries to record the
machine’s disposal under each separate situation:...
Chapter 8 Question 5: Onslow Co. purchases a used machine for $288,000 cash on January 2...
Chapter 8 Question 5:
Onslow Co. purchases a used machine for $288,000 cash on January
2 and readies it for use the next day at a $10,000 cost. On January
3, it is installed on a required operating platform costing $2,000,
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...
Onslow Co. purchases a used machine for $178,000 cash on January 2 and readies it for...
Onslow Co. purchases a used machine for $178,000 cash on January
2 and readies it for use the next day at a $2,840 cost. On January
3, it is installed on a required operating platform costing $1,160,
and it is further readied for operations. The company predicts the
machine will be used for six years and have a $14,000 salvage
value. Depreciation is to be charged on a straight-line basis. On
December 31, at the end of its fifth year...
Onslow Co. purchases a used machine for $178,000 cash on January 2 and readies it for...
Onslow Co. purchases a used machine for $178,000 cash on January
2 and readies it for use the next day at a $2,840 cost. On January
3, it is installed on a required operating platform costing $1,160,
and it is further readied for operations. The company predicts the
machine will be used for six years and have a $14,000 salvage
value. Depreciation is to be charged on a straight-line basis. On
December 31, at the end of its fifth year...
Onslow Co. purchases a used machine for $144,000 cash on January 2 and readies it for...
Onslow Co. purchases a used machine for $144,000 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 $17,280 salvage
value. Depreciation is to be charged on a straight-line basis. On
December 31, at the end of its fifth year...
Onslow Co. purchases a used machine for $192,000 cash on January 2 and readies it for use the next day at a $6,000 cost.
Onslow Co. purchases a used machine for $192,000 cash on January 2 and readies it for use the next day at a $6,000 cost. On January 3, it is installed on a required operating platform costing $1,200, 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...
The following information applies to the questions displayed below.] Onslow Co. purchased a used machine for...
The following information applies to the questions displayed
below.]
Onslow Co. purchased a used machine for $192,000 cash on January 2.
On January 3, Onslow paid $6,000 to wire electricity to the machine
and an additional $1,200 to secure it in place. 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.
3. Prepare journal entries...
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