On May 28, 2021, Sunland Services purchased equipment for $98,400, giving the supplier a 1-year note at 5% (due at maturity) for $79,500, and paid the balance with cash. Sunland also paid Wu Engineering $4,800 cash for installing the equipment on May 30. The equipments useful life was estimated to be five years, with an $17,400 residual value. The straight-line method of depreciation is used for equipment and Sunland has a calendar year end. On October 4, 2023, the equipment was destroyed in an accident. Sunland received $61,500 cash as insurance proceeds for the equipment.

Record the transactions of May 28 and 30, 2021. (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
2021
May 28
May 30

List of Accounts

Question Part Score

--/5

Record the depreciation expense for Sunland for the fiscal years ended December 31, 2021 and 2022. (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
2021
Dec. 31
2022
Dec. 31

List of Accounts

Question Part Score

--/4

Prepare all of the necessary journal entries on October 4, 2023 following the destruction of the asset. (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
2023
Oct. 4
	(To record depreciation expense)
Oct. 4
	(To record sale of equipment)