Question

on July1 2021 Masood company purchases equipment for $30,000 cash. the company uses straight line depreciation it estimate the equipment will have a 10 year life .Masood company has a December 31st year end first.A) record the purchase of equipment B) calculate amount of depreciation Masood company should record for the year of the equipment purchased. C) adjustment entry for the equipment at 31st December 2021​

Answer 1

Answer:

July equipment dr 30000

cash cr 30000

dec depreciation dr 1500

equipment cr 1500

dec equipment closing 28500