Depreciation On July 1, 2017, Gennessee Enterprises buys a computer system for $197,600 in cash. Assume that the computer is expected to have a four-year life and an estimated salvage value of $20,000 at the end of that time. Required: 1. Identify and analyze the transaction to record the purchase of the computer on July 1, 2017. Activity Accounts Statement(s) Operating Computer System Increase, Cash Decrease Income Statement only How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Cash Assets Balance Sheet Liabilities 20,000 Computer System 2. Compute the depreciable cost of the computer. 35,520 3. Using the straight-line method, compute the monthly depreciation. 592 per month. 197,000 + Stockholders' Equity Revenues No Entry No Entry Inc C