When DeSoto Water Works purchased a machine at the end of 2017 at a cost of $65,000, the company debitedBuildings and credited Cash $65,000. The error was discovered in 2018. What journal entry will DeSoto use tocorrect the error? What other step(s) would be taken in connection with the error?

When DeSoto Water Works purchased a machine at the end of 2017 at a cost of $65,000, the company debitedBuildings and credited Cash $65,000. The error was discovered in 2018. What journal entry will DeSoto use tocorrect the error? What other step(s) would be taken in connection with the error?

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...

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Question

When DeSoto Water Works purchased a machine at the end of 2017 at a cost of $65,000, the company debited
Buildings and credited Cash $65,000. The error was discovered in 2018. What journal entry will DeSoto use to
correct the error? What other step(s) would be taken in connection with the error?

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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When DeSoto Water Works purchased a machine at the end of 2015 at a cost of $65,000, the company debited Buildings and credited Cash $65,000. The error was discovered in 2016. What journal entry will DeSoto use to correct the error? What other step(s) would be taken in connection with the error?
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