answer 27-29

Use the following information for questions 23-30 regarding ABC Co. in 2020 (assume this is the first year of operations for ABC Co., and assume ABC pays cash unless noted otherwise, even if it results in ABC having a credit balance in cash): 1/1 Issued 100,000 shares of common stock for $1 each 2/1 Paid $280,000 for equipment with a 10-year useful life. Depreciation in the year was $28,000. 3/1 Signed a 1-year factory lease, paying full amount of $72,000 upfront 3/15 Delivered services to client and bill in full for $575,000 (client will pay at a later date) 5/1 Purchased $40,000 worth of supplies on credit. By 12/31 $5,000 of supplies are left 6/1 Received $400,000 in advance payment from a client for services that will be performed by ABC Co. later 8/1 Performed $100,000 of services that the client paid for on 6/1 10/1 Declared and paid $50,000 in dividends 11/1 Purchased $50,000 in inventory 12/1 Paid $30,000 of the 5/1 purchase of supplies 1 pts D Question 27 What is the journal entry to record depreciation for the year? O Debit Depreciation Expense $280,000; credit Accumulated Depreciation $280,000 O Debit Depreciation Expense $28,000; credit Accumulated Depreciation $28,000 Debit expenses $28,000; credit Income Summary $28,000 O Debit Accumulated Depreciation $28,000; credit Depreciation Expense $28,000 O Debit Depreciation Expense $28,000; credit Equipment $28,000 D Question 28 1 pts What is 2020 Net Income (Loss)? O $522,000 O $552,000 O $675,000 O $517,000 $524,000 None of the above 1 pts Question 29 What is end of year equity? O $652,000 O $0 $912,000 O None of the above $602.000 O $502,000