At the end of Rafael Limited's first year of operations, its trial balance shows Equipment $20,000; Accumulated

Question:

At the end of Rafael Limited's first year of operations, its trial balance shows Equipment $20,000; Accumulated Depreciation- Equipment $0; and Depreciation Expense $0. Depreciation for the year is estimated to be 54,000. Prepare the adjusting entry for depreciation at December 31, and provide the presentation for the equipment at December 31.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...