During a routine internal audit in 2021, Johnson Company found the following items:

Issue 1: Equipment purchased in 2018 at a cost of $200,000 (10-year life, no salvage value) was determined to have a total useful life of 5 years.

Issue 2: In 2019, equipment costing $100,000 was charged to an expense due to an error. The asset should have been depreciated over five years with no salvage value.

Required

For issue #1, calculate the amount of depreciation expense in 2021

For issue #2, prepare the necessary journal entries needed in 2021.

Ignore income taxes

Issue 1: Depreciation Expense in 2021

Issue 2 Journal Entries

Date	Accounts	Debit	Credit