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41. Starz 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.
41. Starz 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 Barre Company on account for $12,500 plus sales tax of $1,125 and shipping costs of $225. May 13 Incurred $140 routine maintenance on the equipment. Dec. 31 Recorded 2022 depreciation on the basis of a 3-year life and estimated salvage value of $4,850. Instructions: Prepare the necessary adjusting journal entries, show computations AND explanations of the adjusting journal entries on the answer sheet
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