QUESTION 4 Presented below are some business transactions that occurred during 2017 for Keyla Company: 1. A heavy duty stapler costing $25 is being depreciated over 5 years. The following entry was 12 MARKS made: Depreciation Expense-Stapler Accumulated Depreciation-Stapler An owner of Keyla Company took a vacation to France and charged the travel expenses to the company. The following entry was made: Travel Expense. Cash .. An account receivable has been deemed a bad debt. The following entry was made: 2. 4,000 4,000 3. 9,000 9,000 Accounts Receivable. Merchandise Inventory with a cost of $420,000 is reported at its fair value of $510,000. The following entry was made: Merchandise Inventory.. Gain on Fair Value Adjustment of Inventory 4. 90,000 3IP age Equipment worth $75,000 was acquired at a cost of $60,000 from a company that was going out of business. The following entry was made: Equipment 5. 75,000 .60,000 15,000 Gain from on Fair Value Adjustment on Equipment .. QUESTION 4 Presented below are some business transactions that occurred during 2017 for Keyla Company: 1. A heavy duty stapler costing $25 is being depreciated over 5 years. The following entry was 12 MARKS made: Depreciation Expense-Stapler Accumulated Depreciation-Stapler An owner of Keyla Company took a vacation to France and charged the travel expenses to the company. The following entry was made: Travel Expense. Cash .. An account receivable has been deemed a bad debt. The following entry was made: 2. 4,000 4,000 3. 9,000 9,000 Accounts Receivable. Merchandise Inventory with a cost of $420,000 is reported at its fair value of $510,000. The following entry was made: Merchandise Inventory.. Gain on Fair Value Adjustment of Inventory 4. 90,000 3IP age Equipment worth $75,000 was acquired at a cost of $60,000 from a company that was going out of business. The following entry was made: Equipment 5. 75,000 .60,000 15,000 Gain from on Fair Value Adjustment on Equipment