Wildhorse Company uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions occurred during 2025. Jan. 1 May 13 Purchased equipment from the Indigo Company on account for $14,700 plus sales tax of $1,975 and shipping costs of $625. Paid for $540 routine maintenance on the equipment. Dec. 31 Recorded 2025 depreciation on the basis of a 3-year life and estimated salvage value of $6,950. Prepare the necessary entries. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Wildhorse Company uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following
transactions occurred during 2025.
Jan. 1
May 13
Dec. 31
Purchased equipment from the Indigo Company on account for $14,700 plus sales tax of $1,975 and shipping costs of
$625.
Paid for $540 routine maintenance on the equipment.
Recorded 2025 depreciation on the basis of a 3-year life and estimated salvage value of $6,950.
Prepare the necessary entries. (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 the amount is entered. Do not indent manually. List all debit entries
before credit entries.)
Date
Account Titles and Explanation
Debit
Credit
Transcribed Image Text:Wildhorse Company uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions occurred during 2025. Jan. 1 May 13 Dec. 31 Purchased equipment from the Indigo Company on account for $14,700 plus sales tax of $1,975 and shipping costs of $625. Paid for $540 routine maintenance on the equipment. Recorded 2025 depreciation on the basis of a 3-year life and estimated salvage value of $6,950. Prepare the necessary entries. (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 the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit
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