Preparing adjusting entries (annual)-depreciation LO4 Mean Beans, a local coffee shop, has the following assets on January 1, 2020. Mean Beans prepares annual financial statements and has a December 31, 2020 year-end. The company's depreciation policy is to use the straight-line method to depreciate its assets. a. On January 1, 2020, purchase equipment costing $15,900 with an estimated life of five years. Mean Beans will scrap the equipment after five years for $0. b. On July 1, 2020, purchase furniture (tables and chairs) costing $21,800 with an estimated life of ten years. Mean Beans estimates that it can sell the furniture for $2,300 after ten years. c. On January 1, 2018, Mean Beans had purchased a car costing $43,500 with an estimated life of eight years. Mean Beans estimates that it can sell the car for $8,700 after eight years. Required: 1-a. For each transaction, calculate the current year annual depreciation expense. a. Annual depreciation expense on equipment b. Annual depreciation expense on furniture C. Annual depreciation expense on car 1-b. For each transaction, record the adjusting entry on December 31, 2020. View transaction list Journal entry worksheet < 2 3 Record annual depreciation on equipment. Note: Enter debits before credits. Date General Journal Credit Dec 31, 2020 Debit K 2. For the car, determine the accumulated depreciation as of December 31, 2020. Accumulated depreciation 3. For the car, determine the book value as of December 31, 2020. Book value