QS 3-9 (Static) Adjusting for depreciation LO P1

For each separate case, record an adjusting entry (if necessary).

1. Barga Company purchases $20,000 of equipment on January 1. The equipment is expected to last five years and be worth $2,000 at the end of that time.
2. Welch Company purchases $10,000 of land on January 1. The land is expected to last forever.

Prepare the entries to record one years depreciation expense of $3,600 for the equipment and what depreciation adjustment, if any, should be made with respect to the Land account as of December 31?

Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field.