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On December 1, 20X1, Phi Corporation acquired equipment for $70,000 cash. The equipment has a useful life of 7 years and no residual value. Calculate

  • On December 1, 20X1, Phi Corporation acquired equipment for $70,000 cash. The equipment has a useful life of 7 years and no residual value. Calculate the depreciation expense for the year 20X1 using the straight-line method.

    Additionally, Phi Corporation made the following transactions during 20X1:

    • December 15: Paid $5,000 for equipment maintenance.

    Required:

    • Calculate the total depreciation expense for the year 20X1.
    • Prepare journal entries for the equipment-related transactions.
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