Question
Commodore Inc. is a privately-owned business based in British Columbia. It was started last year by best friends Melissa and Rebecca who came up with
Commodore Inc. is a privately-owned business based in British Columbia. It was started last year by best friends Melissa and Rebecca who came up with the idea to start a mobile bakery business and now own multiple food trucks across the province. Neither Melissa nor Rebecca has any experience in accounting, but they have attempted to make the appropriate bookkeeping entries over the year. Now that Commodore is in its second year of operations and preparing to expand, Melissa and Rebecca have come to you for help. They would like you to review the depreciation expense that was booked in Year 1 to determine if it was prepared correctly. Commodores policy is to depreciate the food trucks over 5 years using the straight-line method. The data is found in the file called IF1-2302E-PP6.Data-03.xlxs Required: You have been asked to: i. Create a card visualization of how many food trucks there are. ii. Create a table visualization that shows the total depreciation booked in Year 1 for each food truck. iii. Create a table showing the amount of depreciation that should have been booked in Year 1 (using the straight-line method over 5 years). iv. Conclude on what entry is required to correct the error made in Year 1.
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