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Suppose that on January 1 Calilane Travel Company paid cash of $60,000 for equipment that...

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Accounting

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Suppose that on January 1 Calilane Travel Company paid cash of $60,000 for equipment that is expected to reman useful for two years. At the end of two years, the equipments value is expected to be zero. Read the 1. Make joumal entries to record (a) purchase of the equipment on January 1 and (b) annual depreciation on December 31 , Include dates and explanations, and use the following accounts: Equipment, Accumulated Depreciabon-Equipment; and Depreciation Expense- Equipment. 12. Record the purchase of the equipment. (Record debits first, then credis Select the explanation on the last line of the joumat entry table) Requirements 1. Make journal entries to record (a) the purchase of the equipment on January 1 and (b) annual depreciation on December 31. Include dates and explanations, and use the following accounts: Equipment; Accumulated Depreciation-Equipment; and Depreciation Expense-Equipment. 2. Post to the accounts and show their balances at December 31 . 3. What is the equipment's book value at December 31

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