On July 1, 2017, Masood Company purchases equipment for $30,000. The company uses straight-line depreciation. It estimates the equipment will have a 10-year life. Masood Company has a December 31 year end.
(a) Record the purchase of the equipment.
(b) Calculate the amount of depreciation Masood Company should record for the year of the equipment purchase.
(c) Prepare the adjusting journal entry for the equipment at December 31, 2017.