Adjusting Entries for Depreciation; Effect of Error On December 31, a business estimates depreciation on equipment used during the first year of operations to be $22,900. a. Journalize the adjusting entry required as of December 31. If an amount box does not require an entry, leave it blank. Dec. 31 b. If the adjusting entry in (a) were omitted, which items would be erroneously stated on the income statement for the year? Depreciation Expense Net Income If the adjusting entry in (a) were omitted, which items would be erroneously stated on the balance sheet as of December 317 Accumulated Depreciation Total Assets Owner's equity