Zhang Company paid $27,000 to purchase equipment on January 1, 2021. Zhang Company has a December 31
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Zhang Company paid $27,000 to purchase equipment on January 1, 2021. Zhang Company has a December 31 fi scal year end and uses straight-line depreciation. The company estimates the equipment will have a nine-year useful life.
a. Prepare the journal entry to record the purchase of the equipment on January 1, 2021.
b. Prepare the adjusting entries required on December 31, 2021, and 2022.
c. Show the balance sheet and income statement presentation of the equipment at December 31, 2021, and 2022.
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For
Accounting Principles Volume 1
ISBN: 978-1119502425
8th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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