Response to the following problem:
Red hot Hospital purchased an item of laboratory equipment on October 1, 20X1, at a billed price of $20,000. In addition, the hospital paid $200 for freight and $800 for the construction of a wooden base and for making the proper electrical connections. The estimated useful life of the equipment is six years with no salvage value. The hospital's fiscal year ends September 30.
Required: Prepare journal entries to record
(1) the purchase of the equipment,
(2) depreciation expense for the first year,
(3) the write-off of the fully depreciated equipment after six years, and
(4) the funding of depreciation at the end of the first year.