8 Required information [The following information applies to the questions displ

Question

8 Required information [The following information applies to the questions displayed below.J Part 2 of 3 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 181 points 2. Prepare journal entries to record depreciation of the machine at December 31. eBook

Explanation / Answer

2) Journal entry :

Date accounts & explanation debit credit Depreciation expense (249600-28800/6) 36800      Accumlated depreciation-Machine 36800 (To record depreciation)

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