On June 1, 2022, The Rainbow Factory, Corp. purchases equipment for $147,000 in cash. The equipment...

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On June 1, 2022, The Rainbow Factory, Corp. purchases equipment for $147,000 in cash. The equipment has a seven-year useful life and is expected to have a salvage value of $0 at the end of its useful life. Assume that The Rainbow Factory, Corp. uses the straight-line depreciation method (i.e. the cost of the equipment is allocated evenly over its useful life). Assume the balances of both the "Equipment" account and the "Accumulated Depreciation - Equipment" account as of 6/1/2022 were $0 and there are no other transactions during the year.< a. Record the journal entry that the firm should record on June 1, 2022 when it purchased the equipment.< b. Record the necessary adjusting journal entry (AJE) at December 31, 2022, for The Rainbow Factory, Corp. Assume the firm uses an annual accounting period which ends on December 31st and adjusting entries are only made at the end of the accounting period on December 31. No adjusting entries for 2022 have been recorded yet.< What is the Net Book Value of the equipment as of 12/31/2022 (after AJES are made)?< What is the Net Book Value of the equipment as of 12/31/2023 (after AJES are made)?< C. d. On June 1, 2022, The Rainbow Factory, Corp. purchases equipment for $147,000 in cash. The equipment has a seven-year useful life and is expected to have a salvage value of $0 at the end of its useful life. Assume that The Rainbow Factory, Corp. uses the straight-line depreciation method (i.e. the cost of the equipment is allocated evenly over its useful life). Assume the balances of both the "Equipment" account and the "Accumulated Depreciation - Equipment" account as of 6/1/2022 were $0 and there are no other transactions during the year.< a. Record the journal entry that the firm should record on June 1, 2022 when it purchased the equipment.< b. Record the necessary adjusting journal entry (AJE) at December 31, 2022, for The Rainbow Factory, Corp. Assume the firm uses an annual accounting period which ends on December 31st and adjusting entries are only made at the end of the accounting period on December 31. No adjusting entries for 2022 have been recorded yet.< What is the Net Book Value of the equipment as of 12/31/2022 (after AJES are made)?< What is the Net Book Value of the equipment as of 12/31/2023 (after AJES are made)?< C. d.

Answer rating: 100% (QA)

a The journal entry on June 1 2022 when The Rainbow Factory Corp purchased the equipment would be Da... View the full answer