Zebra Consulting prepares adjusting entries and financial statements monthly. Details regarding Zebra Consulting's plant and equipment items follow:

Required
Prepare the monthly adjusting entry to record depreciation for each plant and equipment item at November 30, 2014.
Analysis Component: What is the purpose of recording depreciation? If depreciation is not recorded, how would each of the components of the accounting equation be affected?

Transcribed Image Text:

Plant and Date of Purchasee Equipment tem Estimated Useful Life Estimated Sales Value at End of Estimated Useful Life Cost a. Dec. 1, 2013 Furniture b. Mar. 1, 2014 Equipment 171,600 10 years C. Nov. 1, 2014 Building 27,000 3 years 24,000 140,000 491,000 15 years