For each separate case, record an adjusting entry (if necessary).

a. Barga Company purchases $20,000 of equipment on January 1. The equipment is expected to last five years and be worth

$2,000 at the end of that time.

b. Welch Company purchases $10,000 of land on January 1. The land is expected to last forever.

Prepare the entries to record one year's depreciation expense of $3,600 for the equipment and what