Zebra Consulting prepares adjusting entries and financial statements monthly. Details regarding Zebra Consulting’s plant and equipment items follow:

Required 

Prepare the monthly adjusting entry to record depreciation for each plant and equipment item at November 30, 2020.

Analysis Component: 

What is the purpose of recording depreciation? If depreciation is not recorded, how would each of the components of the accounting equation be affected?

Transcribed Image Text:

Date of Purchase a. Dec. 1, 2019 b. Mar. 1, 2020 c. Nov. 1, 2020 Plant and Equipment Item Furniture Equipment Building Cost $ 36,000 187,000 491,000 Estimated Useful Life 3 years 10 years 15 years Estimated Sales Value at End of Estimated Useful Life $ -0- 25,000 131,000