1. On January 2, 2020, Murphy Company purchased land that cost $410,000, a building on the land that cost $1,450,000, and equipment that cost $70,000. The building has an estimated useful life of 29 years. The equipment has an estimated useful life of 7 years.

Required: Prepare the property, plant, and equipment section of the balance sheet as of December 31, 2020. Note: Use straight-line depreciation with no salvage value. Murphy Company Balance Sheet (partial) December 31 Property, Plant, and Equipment Buildings Accumulated Depreciation, Buildings Total Property, Plant, and Equipment

2. On December 31, Perez Company has earned interest revenue of $2,200 on outstanding notes, even though the company will not actually receive the interest until the following year.

Required: Journalize the adjusting entry on December 31.

3. On January 1, Williams Company purchased a large piece of equipment for $46,200. It has an estimated useful life of 7 years.

Required: Journalize the adjusting entry on December 31.

Note: Use straight-line depreciation with no salvage value.