Suppose that on January $1,$ Forton Ltd$.$ paid cash of $$31,000$ for computers that are expected to remain useful for three years. At the end of three years, the computers' values are expected to be zero.

Required

Make journal entries to record $($a$)$ the purchase of the computers on January $1,$ and $($b$)$ the annual depreciation on December $31.$ Include dates and explanations, and use the following accounts: Computer Equipment; Accumulated Depreciation$-$Computer Equipment; and Depreciation Expense$-$Computer Equipment.

Post to the accounts and show their balances at December $31.$

What is the computers' carrying amount at December $31?$

Which account$($s$)$ will Forton report on the income statement for the year? Which accounts will appear on the balance sheet of December $31?$ Show the amount to report for each item on both financial statements.