5. Accrual Based Accounting - Adjusting Journal Entries (AJES) - 2pts On September 1, 2020, Not So Strong Gym purchases gym equipment for $42,000 in cash. The equipment has a five-year useful life and is expected to have a salvage value of $0 at the end of its useful life. Assume that Not So Strong uses the straight-line depreciation method (i.e. the cost of the equipment is allocated evenly over its useful life). Assume the balances of the "Equipment" account and the "Accumulated Depreciation - Equipment" account as of 9/1/2020 were $0 and there are no other transactions. 6. a. Record the journal entry that Not So Strong should record on September 1, 2020 when it purchased the equipment. b. Record the necessary adjusting journal entry (AJE) at December 31, 2020, for Not So Strong. Assume that Not So Strong uses an annual accounting period which ends on December 31st and adjusting entries are only made at the end of the accounting period on December 31. No adjusting entries for 2020 have been recorded yet. c. What is the Net Book Value as of 12/31/2020 of the gym Equipment purchased on 9/1/20? d. What is the Net Book Value as of 12/31/2021 of the gym Equipment purchased on 9/1/20? Accrual Based Accounting - Adjusting Journal Entries (AJES)-2pts: On August 1st, 2021, Better Than That, Inc. has a $972 beginning balance in the Supplies account. On August 11th, 2021, the firm purchased an additional $8,075 worth of supplies on account. At the end of the month, August 31st, 2021, only $537 worth of supplies remain. a. b. C. d. Record the journal entry Better Than That would make on August 11th, 2021 when it purchases the $8,075 worth of supplies. Record the adjusting journal entry (AJE) Better Than That would make to recognize Supplies Expense on August 31st 2021. Assume Better Than That uses a monthly accounting period which ends on August 31st, 2021 and adjusting entries are only made at the end of the monthly accounting period (i.e. assume no adjusting entries have been recorded yet for the month). Calculate the adjusted balances of both the Supplies account and the Supplies Expense account as of 8/31/2021. Assume the balance of the Supplies account as of 8/1/2021 was $972 (as given above) and the balance of the Supplies Expense account was $0 as of 8/1/2021 and there are no other transactions. What if Better Than That did not make the adjusting entry on 8/31/2021 to recognize Supplies Expense? Indicate by how much the August's ending 8/31/2021's 1) assets, 2) liabilities, 3) revenues, 4) expenses, 5) net income, 6) retained earnings, and 7) SHE would be either under- or overstated if this adjusting entry were not recorded. If no effect, write 'no effect.'