Depreciation of equipment during 2021 was understated by P 12,000. What would be the adjusting entry if the error was discovered at December 31, 2022? O Debit - Retained Earnings, P 12,000; Credit - Accumulated Depreciation, P 12,000. O Debit - Accumulated Depreciation, P 12,000; Credit - Retained Earnings, P 12,000. O Debit - Equipment, P 12,000; Credit Retained Earnings, P 12,000. O No adjusting entry is necessary
Depreciation of equipment during 2021 was understated by P 12,000. What would be the adjusting entry if the error was discovered at December 31, 2022? O Debit - Retained Earnings, P 12,000; Credit - Accumulated Depreciation, P 12,000. O Debit - Accumulated Depreciation, P 12,000; Credit - Retained Earnings, P 12,000. O Debit - Equipment, P 12,000; Credit Retained Earnings, P 12,000. O No adjusting entry is necessary
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 5MC: During 2019, White Company determined that machinery previously depreciated over a 7-year life had a...
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