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joirnal entries 9/03/21 9/05/21 Deposit #2 Purchased a new computer...

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Accounting

joirnal entries
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9/03/21 9/05/21 Deposit #2 Purchased a new computer system that cost $4,800 from Office Mart for use in the business. Mr. Edwards signed a 6 month note, 12% installment note payable for the cost of the system. The computer system has an estimated useful life of 5 years and the residual (salvage) value is $600. This will be recorded as Computer Equipment, and depreciated using the Straight-Line Depreciation method accordingly. Only record the transaction at this time. Depreciation will be recorded as an adjusting entry. Signed a note payable to borrow $5,000 from Western Bank. Interest is 6% annually and the note is to be repaid with interest in six months. Only record the receipt of the note. Interest will be recorded as an adjusting journal entry. Purchased display shelves for $6,000 from Office Furniture Liquidators. The estimated service life of these assets is 10 years. The residual (salvage) value is $0. These items will be recorded as Office Fixtures and depreciated accordingly using the Straight-Line of Depreciation. Only record the purchase of the shelves. Depreciation will be an adjusting entry. AALIA to make the delivery and installation 9/05/21 Ck #1003

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