Test One Annual Adjustments Ogonquit Enterprises prepares annual financial statements and adjusts its accounts only at the end of the year. The following information is available for the year ended December 31, 2017 Required: 1. For each of the following situations, identify and analyze the adjustment necessary on December 31, 2017. Do not round intermediate calculations. If required, round your answers to the nearest dollar. a. Ogonquit purchased office furniture last year for $25,000. The furniture has an estimated useful life of seven years and an estimated salvage value of $4,000. Use straight line Activity Accounts Statement(s) method of depreciation How does this entry affect the accountin equation? f a financial statement item o arrected elect c Entr and leave the amount xoanc me er et on a n an al statement item s negative i.) e rase, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the correspanding financial statement item. Balance Sheet ncome Statement Stockhol Net Assets Liabilities Equity Revenues - Income b. The Supplies account had a balance of $1,200 on January 1, 2017. During 2017, Oganquit added $12,900 to the account for purchases of supplies during the year. A count of the supplies on hand at the end of December 2017 indicates a balance of $900. Activity Accounts Statements) How does this entry affect the accounting equetion? ra financial statement item is not affected, selectNo Entry" and leave the amount box blank. If the effect on a financi al statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Previous