Czyz and Ng are accountants at Cullumber Printers. Cullumber has not adopted the revaluation model for accounting for its property, plant, and equipment. The accountants are having disagreements over the following transactions during the fiscal year ended December 31, 2021:

1.

Cullumber bought equipment on January 1, 2021, for $89,000, including installation costs. The equipment has a useful life of five years. Cullumber depreciates equipment using the double diminishing-balance method. Since the equipment as installed in our system cannot be removed without considerable damage, it will have no resale value. It should not be depreciated but, instead, expensed immediately, Czyz argues.

2.

Depreciation for the year was $43,000. Since the companys profit is expected to be low this year, Czyz suggests deferring depreciation to a year when there are higher profits.

3.

Cullumber purchased equipment at a fire sale for $38,000. The equipment would normally have cost $51,000. Czyz believes that the following entry should be made:

Equipment		51,000
Cash				38,000
Gain on Fair Value Adjustment of Equipment				13,000

4.

Czyz says that Cullumber should carry its furnishings on the balance sheet at their liquidation value, which is $25,000 less than cost.

5.

Cullumber rented office space for one year, effective September 1, 2021. Six months of rent at $2,500 per month was paid in advance. Czyz believes that the following entry should be made on September 1:

Rent Expense		15,000
Cash				15,000

6.

Land that cost $44,000 was appraised at $65,000. Czyz suggests the following journal entry:

Land		21,000
Gain on Fair Value Adjustment of Land				21,000

Ng disagrees with Czyz in each of the situations.

Prepare the correct journal entry to record each transaction. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

No.	Account Titles and Explanation	Debit	Credit
1.
	(Cash purchase of equipment.)
	(To record depreciation expense for 2021.)
2.
	(To record depreciation expense.)
3.
	(Cash purchase of equipment.)
4.
5.
	(To record correct entry for rent)
	(To record adjusting entry of rent expense)
	(To record adjusting entry (alternative method))
6.