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Prepare the journal entry to record the purchase

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Reference no: EM132468185

Problem - Wookland, Inc. paid $210,000 for equipment on January 1, 2019. The equipment has an estimated useful life of 8 years and $40,000 salvage value.

Using the straight-line method:

1. Prepare the journal entry to record the purchase of the equipment on January 1, 2019.

2. Prepare the adjusting journal entry to record depreciation for 2019.

3. What amount would appear on the 2019 and 2020 financial statements regarding:

Depreciate Expense

Equipment

Accumulated Depreciation

4. Compute the book value of the equipment at December 31, 2020.

Reference no: EM132468185

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