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ABC Corp. provided the following balances on March 31, 2024: Cash: $25,000 Accounts Receivable: $15,000 Supplies: $3,000 Accounts Payable: $9,000 Interest Payable: $2,000 Buildings: $50,000
ABC Corp. provided the following balances on March 31, 2024:
- Cash: $25,000
- Accounts Receivable: $15,000
- Supplies: $3,000
- Accounts Payable: $9,000
- Interest Payable: $2,000
- Buildings: $50,000
- Accumulated Depreciation: $8,000
- Mortgage Payable: $30,000
- Common Stock: $25,000
- Retained Earnings: $19,000
Requirements:
- Prepare a trial balance.
- Journalize adjusting entries for:
- Depreciation expense: $3,000
- Supplies used: $1,000
- Prepare an adjusted trial balance.
- Draft a statement of retained earnings.
- Describe the role of depreciation in financial reporting.
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