Kelso Word Processing Service Uses the Straight-Line Method of Depreciation

question 71

Essay

Kelso Word Processing Service uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions and events occurred during the first three years. Instructions
Prepare the necessary entries. (Show calculations.)

---

Definitions:

Deliberate Wrongful Acts

Actions taken with the intention to harm or cause loss to another party.

Liability Policy

An insurance policy providing coverage against legal and financial responsibilities incurred as a result of causing injury to others or damaging property.

Professional Liability Policy

A type of insurance that provides coverage to professionals and firms against claims made by clients for negligence or other mistakes.

Tortious Conduct

Refers to behavior or actions that are unlawful under tort law, leading to liability for damages to a person or property.