Depreciation On July 1, 2017, Gennessee Enterprises buys a computer system for $154,400 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 analyre the transaction to record the purchase of the computer on July 1, 2017 Activity Operating Accounts Computer System Increase, Cash Decrease Statement(s) Balance Sheet only How does this entry affect the accounting equation? fa financial statement item is not affected, select "Ne Entry" and leave the amount box blank. If the effect on a financial statement item is negative, le, a decrease, be sure to enter the Janswer with a minus sign Balance Sheet Income Statement Stockholders' Asses Liabilities Equity 2. Compute the depreciable cost of the computer 3. Using the straight line method, compute the monthly depreciation per month Identity and analyze the adjustment to record depreciation at the end of July 2017 Activity Accounts Statement(s) 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, ie, a decrease be sure to enter the answer with a minus sign. Remember a contra account is increased, it will have the effect of decreasing the corresponding financial statement Item Income Statement Balance Sheet Stockholders + Liabilities Equity Revens 5. Compute the computers a nd value that will be shown on ennessee's balance sheet prepared on December 2017