39 justing for depreciation Barga Company purchases 20000 of

3-9 justing for depreciation Barga Company purchases $20,000 of equipment on January 1, 2015. The equipment is expected to last five years and be worth $2,000 at the end of that time. Prepare the entry to record one year\'s depreciation expense of $3,600 for the equipment as of December 31, 2015. a.

Solution

Journal entry to record depreciation on Equipment is as follows :-

Depreciation expenses - Equipment. Dr. $ 3,600

To Accumulated depreciation- Equipment $ 3,600

( being entry recorded for depreciation expenses of 2015 year)

As land is Non- Depreciable asset, No entry will recorded at the year end as Depreciation on land.

So no entry will come for Depreciation on Land for the year 2015.