3A Depreciation: GREEN company acquires a machine at a cost of $20,000. The machine is expected to have a salvage value of $5,000 at the end of its 10-year useful life. It's estimated that the machine will also last for 15,000 widgets. The machine was purchased on Jan. 1, 1999. It produced 10,000 widgets in Yr 1; and 5,000 widgets in Yr 2.

Prepare journal entries using STRAIGHT-LINE METHOD.

a. Acquisition of machine for cash.

b. Adjusting entry for DEPRECIATION on Dec. 31, Yr 1.

c. Adjusting entry for DEPRECIATION on Dec. 31, Yr 2.