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Question :
1. Adjusting Entries are needed at the end of the period to make sure that accrual accounting principles are applied. The building that houses the business is depreciated at an annual rate of $14,000. Prepare the adjusting entry for year end. Name the accounts impacted and how to use the format account name/dollar amount/ debit or credit, and describe how the Accounting Equation is impacted.
2. The accounting profession follows a set of benchmarks for measurement and disclosure of financial information called the Generally Accepted Accounting Principles (GAAP). (1) Describe what the Going-concern Assumption is and give an example of its application.
Prepare journal entries for each event and adjusting entries.
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