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On March 1, Agava Restaurant bought two new walk-in freezers for a total cost of $89,000. The freezers have an estimated useful life of 10 years and an estimated residual value of $3,800. Freight of $1,400 was paid by the vendor, and Agava paid $4,300 for installation costs. The company signed a 10-year, 6% note for the purchase. Agava uses straight-line depreciation.
Required:
Record the journal entry to record the purchase, and any adjusting entries necessary at the 12/31 balance sheet date.
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