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Essay Details:
Essay text:
According to the information provided the equipment has a life span of 12 years. The depreciation is seventy thousand or 840,000/ 12. Adjustments to accumulated depreciation and depreciation expense are required. In this case the adjustment increases both accounts.
Accumulated Depreciation,
Equipment Depreciation expense
70,000 70,000
During the year interest has been accruing on the bonds payable. The interest will affect accrued interest payable and interest expense. The 20,000 will increase both accounts. Accrued interest payable will reflect an increase and interest expense will reflect a decrease...
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