A company purchases new equipment for $60,000 cash on August 1, 2021. At the time of purchase, the equipment is expected to beused in operations for four years (48 months) and have no resale or scrap value at the end of the four years. The company depreciatesthe equipment evenly over the 48 months ($1,250/month).Record the adjusting entry for depreciation on December 31, 2021. (If no entry is required for a transaction/event, select "No journalentry required" in the first account field.)1View transaction listJournal entry worksheet1Record the adjusting entry for depreciation on December 31, 2021.Note: Enter debits before credits.DateGeneral JournalDebitCreditDecember 31, 2021Record entryClear entryView general journal

DEPRECIATION IS THE FALL IN THE VALUE OF ASSET DUE TO TIME OR USAGE .

Answered: A company purchases new equipment for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Oriole Company purchases an oil tanker depot on January 1, 2025, at a cost of $657,400. Oriole expects to operate the depot for 10 years, at which time it is legally required to dismantle the depot and remove the underground storage tanks. The company estimates the dismantle and removal will cost $73,610 at the end of the depot's useful life. (a) Prepare the journal entries to record the depot and asset retirement obligation for the depot on January 1, 2025. Based on an effective-interest rate of 6%, the present value of the asset retirement obligation on January 1, 2025, is $41,103. Use the Plant Assets account for the tanker depot. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) (b) Account Titles and Explanation (To record the depot) (To record the asset retirement obligation) eTextbook and…
Please help me find the amount on 2019 and 2020
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