On December 31, a business estimates depreciation on equipment used during the first year of operations to be $2,900.
(a) Journalize the adjusting entry required on December 31.
(b) If the adjusting entry in
(a) were omitted, which items would be erroneously stated on
(1) the income statement for the year and
(2) the balance sheet as of December 31?

Question

On December 31, a business estimates depreciation on equipment used during the first year of operations to be $2,900. 
(a) Journalize the adjusting entry required on December 31. 
(b) If the adjusting entry in 
(a) were omitted, which items would be erroneously stated on 
(1) the income statement for the year and 
(2) the balance sheet as of December 31?

Quizplus · Accepted Answer

The Answer of On December 31, a business estimates depreciation on equipment used during the first year of operations to be $2,900. 
(a) Journalize the adjusting entry required on December 31. 
(b) If the adjusting entry in 
(a) were omitted, which items would be erroneously stated on 
(1) the income statement for the year and 
(2) the balance sheet as of December 31?

On December 31, a Business Estimates Depreciation on Equipment Used