Question 4: (a) "Depreciation is a valuation process that results in the reporting of the fair value of the asset." Do you agree? Explain. How you can link this Depreciation with Going concern assumption. Explain in brief. (b) Adjusting entries are required each time the financial statements are prepared- Explain. Also explain the need for preparing adjusting entries. C) J.B.opened for business on March 1, 2008 as a consulting Firm. Its trial balance before adjustment on March 31, 2008 is as follows: Credit Astromech Consulting Trial Balance 31-March-08 Debit 6,500.00 4,000.00 3,600.00 1,500.00 3,500.00 Number Particulars 101 Cash 102 Account Receivable 103 Prepaid Insurance 104 Supplies 105 Account Payable 106 Office Furniture 107 Uneared Service revenue 108 J.B. Capital 109 Service Revenue 110 Salary Expense 111 Rent Expense 12,000.00 3,000.00 19,100.00 6,000.00 3,000.00 1,000.00 31,600.00 Total 31.600.00 Other data: 1. Tk. 600 of supplies has been used. 2. Mortgage interest rate is 15% per year (The mortgage was taken out on March 1 and the amount of Mortgage payable was Tk. 100000). 3. The insurance policy is for three years 4. Tk. 1,500 of the balance in the uneamed service revenue account remains uneamed at the end of the month. 5. Salaries Expense is 4,500 for the mentioned period. 6. Furniture has 4 years life with salvage value 2000 and per year amount of depreciation is 2500. 7. Dividend revenue eamed and not yet received Tk 5000. Instructions: Joumalize the adjusting entries on March 31, 2008. [Marks: 13.33]