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31) Mercury Service Company uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions occurred during 2022.
31) Mercury Service Company uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions occurred during 2022. Jan. 1 Purchased equipment from the Brawley Company on account for $12,500 plus sales tax of $1,125 and shipping costs of $225. Incurred $140 routine maintenance on the equipment. Recorded 2022 depreciation on the basis of a 3-year May Dec. 13 31 life and estimated salvage value of $4,850. Instructions Prepare the necessary entries. (Show computations.)
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