onslow company purchased a used machine for $192,000 cash on january 2. on january 3, onslow paid $6,000 to…

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. problem 10 - 6a (algo) part 1 required: 1. prepare journal entries to record the machines purchase and the costs to ready it for use. cash is paid for all costs incurred. view transaction list journal entry worksheet < 1 2 3 record the purchase of a used machine for $192,000 cash.

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. problem 10 - 6a (algo) part 1 required: 1. prepare journal entries to record the machines purchase and the costs to ready it for use. cash is paid for all costs incurred. view transaction list journal entry worksheet < 1 2 3 record the purchase of a used machine for $192,000 cash.

Answer

Explanation:

Step1: Record machine purchase

Debit Machinery account for the purchase price of the machine as it is an asset being acquired. Credit Cash account as cash is paid.

Date Account Titles and Explanation Debit ($) Credit ($)
Jan 2 Machinery 192000
Cash 192000

Step2: Record cost of wiring electricity

This cost is a necessary expenditure to get the machine ready for use, so it is capitalized. Debit Machinery and credit Cash.

Date Account Titles and Explanation Debit ($) Credit ($)
Jan 3 Machinery 6000
Cash 6000

Step3: Record cost of securing the machine

This is also a cost to make the machine operational and is capitalized. Debit Machinery and credit Cash.

Date Account Titles and Explanation Debit ($) Credit ($)
Jan 4 Machinery 1200
Cash 1200

Answer:

Date Account Titles and Explanation Debit ($) Credit ($)
Jan 2 Machinery 192000
Cash 192000
Jan 3 Machinery 6000
Cash 6000
Jan 4 Machinery 1200
Cash 1200