QS 3-7 Preparing adjusting entries (annual)-depreciation LO4 Jan. 1, 2020 Dec. 31, 2020 Mar. May July Jan. Feb. Apr. June Aug. Oct. Dec. bart 2020 Equipment will last five years (2020-2024) On January 1, 2020, Taco Taqueria, a Mexican restaurant, purchased equipment for $12,000 cash. Taco Taqueria estimates that the equipment will last five years (useful life). The restaurant expects to sell the equipment for $2,000 at the end of five years. Taco Taqueria prepares financial statements on an annual basis and has a December 31 year-end. a. Record the journal entry on January 1, 2020. b. What is the formula to calculate straight-line depreciation? c. Using the straight-line depreciation method, calculate the annual depreciation for 2020 (Jan. 1 to Dec. 31, 2020) d. In order to prepare the annual financial statements, record the adjusting journal entry for depreciation on December 31, 2020. QS 3-8 Preparing adjusting entries (annual)-depreciation expense LO4