+ QUESTION 3: DEPRECIATION AND JOURNAL ENTRIES, STATEMENT OF PROFIT OR LOSS, BALANCE SHEET A list of account balances for Gardenia Gardens Ltd as at the end of the 30 June 2021 reporting period is shown below Accounts Payable Accumulated depreciation - Plant and Equipment Cash at Bank Depreciation expense - Plant and Equipment Insurance Expense Plant and Equipment Prepaid insurance Receivables 20,600 8,650 26,000 20,650 2,100 125,000 650 14,000 Rent expense 29,500 Rent Received in Advance 12,000 Rent revenue 14,000 Retained Earnings at 1/7/2020 16,000 Salaries Expense 114,300 Salaries Payable 6,000 Service Revenue 178,000 Share Capital Supplies expense Supplies on hand 75,000 17,500 1,200 Additional information: Plant and equipment depreciation for 2021 has not yet been recorded. The plant and equipment is depreciated on a straight-line basis over 5 years and has a residual value of $21,750. a. Calculate depreciation and prepare journal entries to record the depreciation expense (narrative required) b. Prepare the Statement of Profit or Loss c. Prepare the Balance Sheet HINT: Remember to update the account balances affected by depreciation journal entries.