Example Five:

On January 1, 2018, OP Company purchased equipment to be used in their business. The equipment cost $78,000. It will be used for 8 years, after which its salvage value (residual value) is estimated to be $6,000.

Required:

1. Record the purchase of the machine on January 1, 2017.

Date	Account Name	Debit	Credit

2. Complete the depreciation table below using straight-line depreciation.

Period Ended	Depreciation Expense	Accumulated Depreciation	End of Period Book Value
12-31-2018
12-31-2019
12-31-2020
12-31-2021
12-31-2022
12-31-2023
12-31-2024
12-31-2025

Record the depreciation expense as of December 31, 2018.

Date	Account Name	Debit	Credit

Suppose OP Company sells the equipment on December 31, 2021 for $44,000. Prepare the journal entry to record the sale.

Date	Account Name	Debit	Credit