Answer:
<u>Question 1</u>
Part a
Debit : Depreciation $8.231
Credit : Accumulated Depreciation $8.231
Part b
Debit : Interest Expense $8,000
Credit : Long term notes payable $8,000
Part c
Debit : Office Supplies Expenses $ 500
Credit: Office Supplies $ 500
<u>Question 2</u>
Capital amount to be reported on the December 31, 2017 balance sheet is $170,551
Explanation:
<em>See below the full question that i have attached </em>
Calculation of Capital amount as at December 31, 2017
Balance before adjustments $187,282
Adjustments :
Depreciation ($8.231)
Interest Expense ($8,000)
Office Supplies Expenses ($ 500)
Balance after adjustments $170,551
