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Problem - On December 31, a business estimates depreciation on equipment used during the first year of operations to be $13,900.
a. Journalize the adjusting entry required as of December 31.
b. If the adjusting entry in (a) were omitted, which items would be erroneously stated on (1) the income statement for the year?
b. If the adjusting entry in (a) were omitted, which items would be erroneously stated on (1) the income statement for the year and (2) the balance sheet as of December 31?
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