On July 1, 2019, Sunland Company purchased new equipment for $80,000. Its estimated useful life was 8 years with a $20,000 salvage value. On December 31, 2022, the company estimated that the equipments remaining useful life was 10 years, with a revised salvage value of $5,000.

Prepare the journal entry to record depreciation on December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

Shown below are the T-accounts relating to equipment that was purchased for cash by a company on the first day of the current year. The equipment was depreciated on a straight-line basis with an estimated useful life of 10 years and a salvage value of $140. Part of the equipment was sold on the last day of the current year for cash proceeds.

Cash
		Jan. 1	(a)
Dec. 31	490

Equipment
Jan. 1	1,140
		Dec. 31	480

Accumulated DepreciationEquipment
		Dec. 31	140
Dec. 31	80

Depreciation Expense
Dec. 31	(b)

Gain on Disposal of Plant Assets
		Dec. 31	(c)

(a)

Prepare the journal entries to record purchase of equipment on January 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1	enter an account title to record purchase of equipment on January 1	enter a debit amount	enter a credit amount
	enter an account title to record purchase of equipment on January 1	enter a debit amount	enter a credit amount

What was the cash paid?

Cash
Dec. 31	490	Jan. 1	enter the amount of cash paid on January 1