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HP TrueVision HD ?returnUrl:https%3A%2F%2Fconnect.mheducation.com%2Fpaamweb%2Findex.htm BUS241 WildSe Pr6-5A orites Tools Help ect HW G IThe following information applies to the questions displayed below Onslow Co. purchases a used machine for $240,000 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 $28.800 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. Journal entry worksheet

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Date Accounts Dr Cr 1 jan 2 Machine 240000 To cash 24000 Jan 3 Machine 8000 To Cash 8000 Jan 3 Machine 1600 To cash    1600 2 Dec 31 Depreciation expense [249600 - 28800] / 6 36800 To Accumulated depreciation - machine 36800 Dec 31 Depreciation expense [249600 - 28800] / 6 36800 To Accumulated depreciation - machine 36800 3 Dec 31 Cash 24500 Accumulated depreciation - machine[36800 *5 years] 184000 loss on sale of machine 41100 To Machine 249600 Dec 31 Cash 98000 Accumulated depreciation - machine[36800 *5 years] 184000 To gain on sale of machine 32400 To Machine 249600 Dec 31 Cash 35000 Accumulated depreciation - machine[36800 *5 years] 184000 Loss from fire 30600 To machine 249600