$1-$b$.$ For each transaction, record the adjusting entry on December $31,2023.$

Journal entry worksheet

Record annual depreciation on equipment.

Note: Enter debits before credits. For the car, determine the accumulated depreciation as of December $31,2023.$

Accumulated depreciation

For the car, determine the book value as of December $31,2023.$

Book valueMean Beans, a local coffee shop, has the following assets on January $1,2023.$ Mean Beans prepares annual financial statements and

has a December $31,2023$ year$-$end. The company's depreciation policy is to use the straight$-$line method to depreciate its assets.

a$.$ On January $1,2023,$ purchase equipment costing $$17,800$ with an estimated life of five years. Mean Beans will scrap the equipment

after five years for $$0.$

b$.$ On July $1,2023,$ purchase furniture $($tables and chairs$)$ costing $$19,600$ with an estimated life of ten years. Mean Beans estimates

that it can sell the furniture for $$2,600$ after ten years.

c$.$ On January $1,2021,$ Mean Beans had purchased a car costing $$40,750$ with an estimated life of eight years. Mean Beans estimates

that it can sell the car for $$8,150$ after eight years.

Required:

$1-$a$.$ For each transaction, calculate the current year's annual depreciation expense.

$1-$b$.$ For each transaction, record the adjusting entry on December $31,2023.$