QS 3-9 (Static) Adjusting for depreciation LO P1 For each separate case, record an adjusting...
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QS 3-9 (Static) Adjusting for depreciation LO P1
For each separate case, record an adjusting entry (if necessary).
Barga Company purchases $20,000 of equipment on January 1. The equipment is expected to last five years and be worth $2,000 at the end of that time.
Welch Company purchases $10,000 of land on January 1. The land is expected to last forever.
Prepare the entries to record one years depreciation expense of $3,600 for the equipment and what depreciation adjustment, if any, should be made with respect to the Land account as of December 31?
Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field.
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