On January 2, 2018, Claymore Corporation purchased a vehicle for $50,000 cash. The company uses straight-line depreciation

Question:

On January 2, 2018, Claymore Corporation purchased a vehicle for $50,000 cash. The company uses straight-line depreciation and estimates that the vehicle will have a five-year useful life. The company has a December 31 year end and adjusts its accounts annually.

(a) Prepare the journal entry to record the purchase of the vehicle on January 2.

(b) Prepare the adjusting entries required on December 31, 2018, and 2019.

Prepare and post transaction and adjusting entries for insurance.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...