Compute the Following: A

Essay

Compute the following:
a.
Lobo Company purchased equipment for $40,000 with a useful life of five years and no expected salvage value.Prepare the adjusting entry for the first year using the straight-line depreciation method and compute the book value at the end of the second year of the equipment's life.
b.
Zip Company pays its employees every Friday.On January 4,20--,the Company paid $2,200 for the 5 days beginning the previous December 31.Prepare the adjusting entry on December 31.