Chapter 11, Problem 11.7BYP

Requirement – 1

To determine

Errors:

An error is a mistake committed in the process of book-keeping or in accounting.  In some cases, errors may occur but, they will not affect the totals of the trial balance. Such an error can be found while preparing the trial balance or would be indicated by the unusual account balance.

Depreciation:

It refers to the reduction in the monetary value of fixed tangible assets over its useful life due to its wear and tear or, obsolescence. In other words, it is the method of distributing the cost of tangible fixed assets over its estimated useful life.

To prepare: The necessary journal entries for error correction and adjusting entries for the year 2019.

Requirement – 2

To determine

The amount to be reported in comparative financial statement of 2018 and 2017.