Sunland Company paid $17,400 to purchase equipment on January 1, 2017

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.)

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Date Account Titles and Explanation Debit Credit
Jan. 1/17

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.)

Date Account Titles and Explanation Debit Credit
Dec. 31/17
Dec. 31/18
Show the balance sheet presentation of the equipment at December 31, 2017, and 2018.

SUNLAND COMPANY
Balance Sheet (partial)
Year Ended December 31Month Ended December 31December 31
2018 2017
Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentRevenuesStockholders’ EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders’ EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders’ Equity
$ $
LessAdd:
Carrying amount
$ $