Suppose that on January 1

BrothersBrothers

Travel Company paid cash of

$ 70 comma 000$70,000

for equipment that is expected to remain useful for

twotwo

years. At the end of

twotwo

years, theequipment's value is expected to be zero.

1.	Make journal entries to record (a) purchase of the equipment on January 1 and (b) annual depreciation on December 31. Include dates and explanations, and use the following accounts: Equipment; Accumulated Depreciationlong dashEquipment; and Depreciation Expenselong dashEquipment.
2.	Post to the accounts and show their balances at December 31.
3.	What is the equipment's book value at December 31?