question 4.sukh

Mean Beans, a local coffee shop, has the following assets on January 1, 2017. Mean Beans prepares annual financial statements and has a December 31, 2017 year-end. a. On January 1, 2017, purchase equipment costing $21,600 with an estimated life of five years. Mean Beans will scrap the equipment after five years for $0. b. On July 1, 2017, purchase furniture (tables and chairs) costing $16,000 with an estimated life of ten years. Mean Beans estimates that it can sell the furniture for $1,600 after ten years. c. On January 1, 2015, Mean Beans had purchased a car costing $27,250 with an estimated life of eight years. Mean Beans estimates that it can sell the car for $5,450 after eight years. Assume Mean Beans, uses Straight Line Method to depreciate the asset. Required: 1-a. For each transaction, calculate the annual depreciation expense. I-b. For each transaction, record the adjusting entry on December 31, 2017. (If no entry is required for a transaction/event, select "No ournal entry required" in the first account field.) Journal entry worksheet Record annual depreciation on equipment. Note: Enter debits before credits. 2. For the car, determine the accumulated depreciation as of December 31, 2017. 3. For the car, determine the carrying amount as of December 31, 2017