For each separate case, record an adjusting entry (If necessary)- a. Barga Company purchases $31,000 of equipment on January 1. The equipment is expected to last five years and be worth $4,200 at the end of that time. b. Welch Company purchases $1.00 of land on January 1. The land is expected to last forever. Prepare the entries to record one year's depreclation expense of $5,360 for the equipment and what depreclation adjustment, If any. should be made with respect to the Land account as of December 31? (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.)
For each separate case, record an adjusting entry (If necessary)- a. Barga Company purchases $31,000 of equipment on January 1. The equipment is expected to last five years and be worth $4,200 at the end of that time. b. Welch Company purchases $1.00 of land on January 1. The land is expected to last forever. Prepare the entries to record one year's depreclation expense of $5,360 for the equipment and what depreclation adjustment, If any. should be made with respect to the Land account as of December 31? (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.)
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 13PB: Montezuma Inc. purchases a delivery truck for $20,000. The truck has a salvage value of $8,000 and...
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