Required information
[The following information applies to the questions displayed below.]
Onslow Company purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid $6,000 to wire
electricity to the machine. Onslow paid an additional $1,200 on January 4 to secure the machine for operation. 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.
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.
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Journal entry worksheet
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1
2
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Record the purchase of a used machine for $192,000 cash.
Note: Enter debits before credits.
Date
January 02
General Journal
Debit
Credit
Record entry
Clear entry
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