Minions report a balance of $$4,900$ of supplies remaining in inventory. Record the adjusting

entry on December $31$

On January $1,$ almost three years ago, Omega purchased equipment for $$200,000.$ At that time, it

was estimated that the equipment would have a useful life of four years and have a salvage value

of $$40,000.$ As of this date, two years of depreciation have accrued. Omega reevaluates their

estimate and determines that rather than the four$-$year useful life initially estimated, they now

expect the equipment to last a total of seven years with no salvage value. Prepare the journal

entry for equipment depreciation $($pp$.592-593)$ on December $31.$

What is depreciation?

Calculate the current book value of the equipment before the adjusting entry.

Calculate current year depreciation expense.

Depreciation on the remaining equipment is $20,000.$ Building depreciation is $$18,000.$ Prepare

the journal entry for equipment & building depreciation $($pp$.592-593)$ on December $31.$