Question $3$

USE THE CHARTS PROVIDED IN YOUR ANSWER

Marked out of $37\mathrm{.}50$

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Accounting for Equipment sold for $$8,000.$

Required

Prepare journal entries to record the initial purchase of the equipment on January $2$ and the year$-$end depreciation adjustment on December $31,$ and post the journal entries to T$-$accounts. Assume that Lev Company uses the straight$-$line depreciation method.

$\backslash$table$[[,$Account Name,Deblt,Credit$],[($a$),,0,0],[,,0,0],[,$To record purchase of equipment,,$],[($b$),,0,0],[,,0,0],[,$To record annual depreciation,,$]]$

Note: If there is no posting for a journal entry reference listed, leave the answer blank or add a zero.

$($a$)$ Cash $,0($a$)$

$\backslash$table$[[$Equipment$],[($a$),0,0]]$

$\backslash$table$[[$Accumulated Depreciation,$],[($b$),0,0($b$)]]$

$\backslash$table$[[$Depreciation Expense$],[($b$),0,0($b$)]]$