Starz service uses the straight-line method of depreciation. The company’s fiscal year-end is December 31. The following transactions occurred during 2022.

January 1 Purchased equipment from the barre company on account for 12,500 plus sales tax of 1,125 and shipping cost of 225

May 13 Incurred 140 routine maintenance on the equipment.

Dec 31 Recorded 2022 depreciation on the basis of 3-year life and estimated salvage value of $4,850

Prepare the necessary adjusting journal entries, show computations and explanations of the adjusting entries on the answer sheet.

Dates Accounts debit Credit

Answer rating: 100% (QA)

The require journal entries is given below Date Account title and explanation Debit credit ... View the full answer