TRANSACTION ANALYSIS: Jensen Corp. is a biopharmaceutical company that develops and commercializes products targeting the extracellular matrix for the endocrinology, dermatology, and drug delivery markets.

Transaction 1A January 1, Y3: On January 1, Y3 Jensen Corp. purchased a lab vacuum pump for $30,000 on account. The estimated residual value was $10,000 and the estimated useful life was five years. Jensen Company depreciates equipment using the straight-line method. Give the journal entry for the purchase of the equipment.

a. Indicate the account title to be debited by $30,000.

b. Indicate the account title to be credited by $30,000.

Transaction 1B December 31, Y3: Give the adjusting entry that was made at the end of Y3 for the depreciation on the equipment.

c. Compute the depreciation expense (straight-line method).

d. Indicate the account title to be debited by the above amount.

e. Indicate the account title to be credited by the above amount.

f.

Transaction 1C December 31, Y5: On December 31, Y5 the Accumulated Depreciation account had balance of $12,000. On December 31, Y5 Jensen Company sold the vacuum pump for $19,000 cash. Give all journal entries related to the disposal of the vacuum pump.

g. Indicate the account title to be debited by $19,000.

h. Indicate the account title to be debited by $12,000.

i. Indicate the account title to be credited by $30,000

j. Indicate the account title to be credited by $1,000.