Im not sure where the value 319 for depreciation expense came from on the Statement of Earnings. On the Journalized Transactions, Depreciation Expense is 169. Whats going on?
QUESTION 1 (30 marks) PART 1: (18 marks) president echnology Toto Technology Ltd. started business operations on Sept 1, 2017. The company's Terry Yates, envisions the company becoming the leading provider of information t services in the Greater Toronto Area. Below is a summary of the transactions and events that occurred during the first month o operations at Toto Technology Ltd.: September 1- Terry purchased 100 common shares at $100 each September 1-Received a $200,000 bank loan from the Royal Bank of Toronto. Terms of the loan were interest only payments for 2 years, payable on the 1" of every month, with the principalportion-of the loan due on January 1, 2019. The stated annual interest rate on the loan was $6%,compounded monthly September 2-Purchased a commercial property (i.e. land and building) for $200,000. The value of the land was $150,000 and the building was valued at $50,000, All capital assets at Toto are depreciated on a straight-line basis. The building and land have an expected useful life of 50 years September 2-Paid in advance a one year insurance policy premium of $3,000; paid in cash September 3-Hired two IT consultants September 4-Various office supplies purchased for $2,000; paid cash September 6-Performed IT services for a local manufacturer and immediately invoiced the customer for $6,000 September 7-Paid $2,500 for salaries that were incurred to date September 15-Payment of $6,000 received for September 6 invoice September 17- Performed IT services for 3 customers, receiving $2,500 in cash and immediately invoiced the remaining amount (i.e. $4,500) September 19-Purchased a car on credit for $20,000. The loan was provided by the car dealer at 0% interest. The amount will be paid over 4 years with monthly payments due on the 19th of every month. The car has an expected useful life of 6 years, with an expected salvage value of $3,000 after 6 years. September 24 - Received $5,000 from client in advance of work being performed September 30 - Dividends of $2,000 are paid to Terry Page