Compute the following:a. Lobo Company purchased equipment for $40,000 with a useful life of five years and no expected salvage value. Prepare the adjusting entry for the first year using the straight-line depreciation method. Omit explanations. If an amount box does not require, leave it blank. **Page: 1****Exercise a:**Lobo Company purchased equipment for $40,000 with a useful life of five years and no expected salvage value. Compute the book value at the end of the second year of the equipment’s life.- **Book Value:** [Input field for book value]**Journal Entry Fields:**- **Date**- **Description** (Dropdown options)- **Post. Ref.**- **Debit** - **Credit** - Line 1: [Input fields] - Line 2: [Input fields]---**Exercise b:**Zip Company pays its employees every Friday. On January 4, 20--, the Company paid $2,200 for the 5 days beginning the previous December 31. Prepare the adjusting entry on December 31. Omit explanations. If an amount box does not require, leave it blank.**Journal Entry Fields:**- **Date**- **Description** (Dropdown options)- **Post. Ref.**- **Debit** - **Credit** - Line 1: [Input fields] - Line 2: [Input fields]

Name: Compute the following:a. Lobo Company purchased equipment for $40,000
Uploaded: 2022-05-24T13:26:03.000Z
Channel: Bartleby
Description: Compute the following:a. Lobo Company purchased equipment for $40,000 with a useful life of five years and no expected salvage value. Prepare the adjusting entry for the first year using the straight-line depreciation method. Omit explanations. If an

Date Description Post. Ref. Debit Credit 1. a. Depreciation expense ($40,000 / 5 years) 8,000 2 Accumulated depreciation - Equipment 8,000Book value = Cost - Accumulated depreciation Book value = $40,000 - ($8,000 x 2 years) Book value = $40,000 - $16,000 Book value = $24,000 Date Description Post. Ref. Debit Credit 1. b. Salaries expense 440 2 Salaries payable (2,200 x 1/5) 440