Mother Hips Garment Company Purchased Equipment on June 1 for $90,000

Essay

Mother Hips Garment Company purchased equipment on June 1 for $90,000, paying $20,000 cash and signing a 9%, 2-month note for the remaining balance. The equipment is depreciated at the rate of $18,000 per year. Mother Hips Garment Company prepares monthly financial statements.
Instructions
(a) Prepare the general journal entry to record the acquisition of the equipment on June 1st.
(b) Prepare the adjusting journal entry for depreciation that should (c) Show how the equipment will be reflected on Mother Hips Garment Company's balance sheet on June 30th.