Hillman Janitorial Services, Inc. purchased a new floor steam cleaner on July 31, 2017. Hillman paid $7,000 cash. The company expects the new floor steam cleaner to be useful for 5 years after which time the company expects to sell it for $500. The company has a December 31 year end and would like to use straight-line depreciation.

Required:

Record the journal entry for the purchase of the new floor steam cleaner.

Record the required year-end adjustment

On March 31, 2018, Hillman sold the floor steam cleaner. Record depreciation up to the date of the sale.

Assume that Hillman sold the floor steam cleaner for:

$6,600 cash, record the journal entry for the sale

$3,300 cash, record the journal entry for the sale