Question
Capital Injection $10,000 to the business. Vehicle bought at $4000 and Equipment bought at $2000. Prepayment rent for two months $700. At the end of
Capital Injection $10,000 to the business. Vehicle bought at $4000 and Equipment bought at $2000.
Prepayment rent for two months $700.
At the end of the month when preparing financial statements, the following adjustments are made
a) The rent expense incurred for the month is recognized
b) Depreciation for the vehicle and the equipment of $200 and $100 respectively are recognized
c) Although the electricity invoice will only be received in the next month, the electricity usage for the current month estimated to be $100 is recognized
Do up a table to reflect the above for the accounting equation.
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