Problem
Sunland Company paid $17,400 to purchase equipment on January 1, 2017. Sunland Company has a December 31 fiscal year end and uses straight-line depreciation. The company estimates the equipment will have a 6-year useful life.
Prepare the journal entry to record the purchase of the equipment on January 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Prepare the adjusting entries required on December 31, 2017, and 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Show the balance sheet presentation of the equipment at December 31, 2017, and 2018.