QS 3-9 (Algo) Adjusting for depreciation LO P1
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 $11,000 of land on January 1. The land is expected to last forever.
Prepare the entries to record one years depreciation expense of $5,360 for the equipment and what depreciation adjustment, if any, should be made with respect to the land account as of December 31?
