On December 31, a business estimates depreciation on equipment used during the first year of operations to be $21,100.

a. Journalize the adjusting entry required as of December 31. If an amount box does not require an entry, leave it blank.

Dec. 31

b. If the adjusting entry in (a) were omitted, which items would be erroneously stated on the income statement for the year?

Depreciation Expense
Net Income

If the adjusting entry in (a) were omitted, which items would be erroneously stated on the balance sheet as of December 31?

Accumulated Depreciation
Total Assets
Owners equity