Martin Towing Company is at the end of its accounting year ending December 31. The following data

that must be considered were developed from the company's records and related documents: Prepare the adjusting entry required for each transaction at December 31 of the current year.

a. On January 1 of the current year, the company purchased a new hauling van at a cash cost of $28,000. Depreciation estimated at $3,500 for the year has not been recorded for the current year.