Suppose that on January 1 Callilane Travel Company paid cash of S70,000 for equipment that is expected remain useful for two years. At the end of two years, the equipment's value is expected to be zero. Read the requirements 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 Depreciation Equipment, and Depreciation Expense-Equipment. 1a. Record the purchase of the equipment. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Journal Entry Date Accounts and Explanation Debit Credit Jan 1b. Record the entry for the annual depreciation Journal Entry Date Accounts and Explanation Debit Credit Dec 2. Post to the accounts and show their balances at December 31. Accumulated Depreciation- Depreciation Expense- Equipment Equipment Equipment Bal Bal Bal 3. What is the equipment's book value at December 31? Use the table below to calculate the book value of the equipment. Less Book value at December 31