On May 1, Chicago Gold Exchange paid cash of $28,800 for computers that are expected to remain useful for four years. At the end of four years, the value of the computers is expected to be zero. Requirements 1. Calculate the amount of depreciation for the month of May using the straight-line depreciation method. 2. Record the adjusting entry for depreciation on May 31 3. Post the purchase of May and the depreciation on May 31 to T-accounts for the following accounts: Computer Equipment, Accumulated Depreciation-Computer Equipment, and Depreciation Expense-Computer Equipment . Show their balances at May 31 4. What is the computer equipment's book value at May 31? Requirement 1. Calculate the amount of depreciation for the month of May using the straight-line depreciation method. Begin by selecting the labels, than enter the amounts and compute the amount of depreciation for the month of May. Abbreviation used; Ace, Depreciation = Accumulated Depreciation Enter a "0" for any zero balances) Cost Residual Value Useful Life 12 months - Straight-line depreciation 28,800 / 12 months = 7,200 Requirement 2. Record the adjusting entry for depreciation on May 31 (Record debits first, then credits. Select the explanation on the last line of the journal entry table) Date Accounts and Explanation Credit May 31 Depreciation Expense Computer Equipment Computer Equipment 600 Dobit 600 Requirement 3. Post the purchase of May 1 and the depreciation on May 31 to T-accounts for the following accounts: Computer Equipment, Accumulated Depreciation - Computer Equipment, and Depreciation Expense--Computer Equipment Show their balances at May 31. (Use dates as posting references to post the transactions. Use a "Bal" posting reference to show the ending balance of each account.) Computer Equipment Accumulated Depreciation-Computer Equipment Depreciation Expense-Computer Equipment Requirement 4. Calculate the computer equipment's book value at May 31. nn Book value of plant assets: Less: Book value of computer equipment