Ludwig Inc. completed all of its January 31, 2015, adjustments in preparation for preparing its financial statements, which resulted in the following adjusted trial balance. a) Prepare the entry (entries) to record any impairment losses at January 31, 2015. Assume the company recorded no impairment losses in previous years. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). For each journal entry, indicate how each account affects the balance sheet (Assets, Liabilities, Equity). Use + for increase and - for decrease. For example, if an account decreases equity, choose '-Equity'. General Journal Page Gj1 Effect On Date Account/Explanation F Debit Credit Balance Sheet Adjusted Trial Balance Accounts payable. $4,800 Accounts receivable 9,000 Accumulated depreciation, building. 38,000 Accumulated depreciation, equipment 17,100 Accumulated depreciation, furniture 9,600 Allowance for doubtful accounts 410 Building 65,000 Cash 4.980 Equipment 40,000 Expenses, including cost of goods sold 349,000 Furniture 25,000 Share capital 30,400 Land 49,000 Merchandise inventory.. 16,100 Long-term notes payable 40,000 Retained earnings 39,000 Sales 375,170 Unearned revenue 3,600 b) Prepare a classified balance sheet at January 31, 2015. (select one) Balance Sheet (select one) X X 1) All accounts have normal balances. 2) $12,100 of the note payable balance is due by January 31, 2016. The final task in the year-end process was to assess the assets for impairment, which resulted in the following schedule. Asset Recoverable Value Land Building. Equipment $52,100 29,100 21,900 18,500 Furniture. Question 1 [4 points] On March 1, 2014, Southgate Inc. purchased new trucks for $286,000. The trucks were expected to last ten years and have a residual value of $10,000. Calculate depreciation expense for 2014 and 2015 to the nearest month using the straight-line method, and the double-declining-balance method. Southgate Inc. has a December 31 year-end. Round final calculations to the nearest dollar. For simplicity, assume the truck is depreciated as an individual item and will not be broken down into its parts and depreciated. Year Straight-Line Double-Declining-Balance 2014 2015