Correcting Journal Entries for Errors The following are independent errors:a.In January 2019, repair costs of $11,160 were debited to the Machinery account. At the beginning of 2019, the book value of the machinery was $114,600. No residual value is expected, the remaining estimated life is 10 years, and straight-line depreciation is used.b.All purchases of materials for construction contracts still in progress have been immediately expensed. It is discovered that the use of these materials was $9,750 during 2018 and $12,360 during 2019.c.Depreciation on manufacturing equipment has been excluded from manufacturing costs and treated as a period expense. During 2019, $53,800 of depreciation was accounted for in that manner. Production was 13,200 units during 2019, of which 3,036 remained in inventory at the end of the year. Assume there was no inventory at the beginning of 2019. Required: Prepare journal entries for the preceding errors discovered during 2020. Ignore income taxes.

All amounts are in $ (a) Journal Entry Retained Earnings. Dr. 10,044 Accumulated…

Answered: a. In January 2019, repair costs of…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 15E: The following are independent errors: a. In January 2019, repair costs of 9,000 were debited to the...

See similar textbooks

Related questions

Question

100%

Correcting Journal Entries for Errors

The following are independent errors:

a.	In January 2019, repair costs of $11,160 were debited to the Machinery account. At the beginning of 2019, the book value of the machinery was $114,600. No residual value is expected, the remaining estimated life is 10 years, and straight-line depreciation is used.
b.	All purchases of materials for construction contracts still in progress have been immediately expensed. It is discovered that the use of these materials was $9,750 during 2018 and $12,360 during 2019.
c.	Depreciation on manufacturing equipment has been excluded from manufacturing costs and treated as a period expense. During 2019, $53,800 of depreciation was accounted for in that manner. Production was 13,200 units during 2019, of which 3,036 remained in inventory at the end of the year. Assume there was no inventory at the beginning of 2019.

Required:

Prepare journal entries for the preceding errors discovered during 2020. Ignore income taxes.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions