Question

a. Barga Company purchases $31,000 of equipment on January 1, 2017. The equipment is expected to last five years and be worth $4,200 at the end of that time. b. Welch Company purchases $11,100 of land on January 1, 2017. The land is expected to last indefinitely Prepare the entries to record one year's depreciation expense of $5,360 for the equipment and what depreciation adjustment, if any, should be made with respect to the Land account as of December 31, 2017? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Record depreciation adjustment on land, if any. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Answer 1

Solution:

Transaction	General Journal	Debit	Credit
a	Depreciation Expense-Equipment	$        5,360
	Accumulated Depreciation-Equipment		$        5,360
	(Being depreciation expense recorded)
b	No journal entry required	$               -
			$               -

Notes:

1) No depreciation entry is required for land because it as indefinite life and it is not subjected any decrease in value for its usage.

2) Depreciation expense for equipment is provided in the question.