1. Explain the reasons for preparing adjusting entries. 2. Identify steps in the accounting cycle. 3. An annual report Kobe Steel, Ltd., one of the world's largest producers of iron and steel showed Plant and equipment at cost $2,626 Accumulated depreciation 1,618 1. Open T -accounts for (a) Plant and Equipment, (b) Accumulated Depreciation, and (c) Depreciation Expense. Enter these amounts therein. Assume that during the ensuing year Kobe Steel purchased additional plant and equipment for cash of S 63 billion and incurred depreciation expense of 'S 107 billion. Prepare the journal 2. entries, and post to the T -accounts Show how Kobe Steel would present its plant and equipment accounts in its balance sheet after the journal entries in requirement 2 4. Demonstrate accounting principles based on international standard 5. . Identify the qualitative characteristics of accounting information 6. Explain how to report items in the income statement