On May 1 your company paid cash of $54,000 for computers that are expected to remain useful for three years. At the end of three years, the value of the computers is expected to be zero, so depreciation is $18,000 per year.
Requirements
1. Post the purchase of May 1 and the depreciation on May 31 to
T-accounts for the following accounts: Computer equipment, Accumulated depreciation—computer equipment, and Depreciation expense—computer equipment. Show their balances at May 31. (Assume that the journal entries have been completed.)
2. What is the computer equipment’s book value on May 31?