On December 31, a business estimates depreciation on equipment used during the first year of operations to

Question:

On December 31, a business estimates depreciation on equipment used during the first year of operations to be $12,200.
(a) Journalize the adjusting entry required as of 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 as of December 31?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...