January 5th Problem: Traded in all of used computer equipment with a fair value of $13,200,000., and received in exchange new computer equipment (useful life: 10 years, salvage value: 1,947,040) with a fair value of $8,000,000 plus cash of $500,000. Double-declining method will be used.

Journal Entry:

Debit to Computer Equipment - New for $11,947,059

Debit to Accumulated Depreciation - Computer Equipment for $100,000

Debit to Cash for $500,000

Credit to Computer Equipment - Old for $12,500,000

Credit to Gain on Disposal - Computer Equipment for $47,059

July 1st Problem: Purchased computer equipment for $30,000,000 of cash, and will use straight-line method

Debit to Computer Equipment for $30,000,000

Credit to Cash for $30,000,000

Adjusting Entry Problem: The computer equipment purchased on July 1, 2021 for $30,000,000 has an estimated salvage value of zero and a useful life of 5 years. This asset has not been depreciated for the six months that it has been owned. In addition, the computer equipment traded on January 5th has not been depreciated for whole year. What are the adjusting entries for end of year, December 31st, 2021?