In 2018, the internal auditors of KJI Manufacturing discovered
the following material errors made in prior years:
KJI uses the straight-line method of depreciation for all
depreciable assets.
Required:
1. Prepare the journal entries at December 31,
2018, to correct the errors (ignore income taxes).
2. Prepare the journal entries to record 2018
depreciation for any assets recorded in requirement 1.
Date | Account Titles | Debit | Credit |
Dec-31 | Equipment | $ 1,75,000 | |
Repair and maintenance expense | $ 1,75,000 | ||
(To rectify error) | |||
Dec-31 | Landscaping | $ 40,000 | |
Land | $ 40,000 | ||
(To rectify error) |
Date | Account Titles | Debit | Credit |
Dec-31 | Depreciation on Equipment | $ 52,500 | |
Acc. Depreciation on Equipment | $ 52,500 | ||
(To record depreciation upto Dec 31, 2017) | |||
Dec-31 | Depreciation on Landscaping | $ 1,500 | |
Acc. Depreciation on Landscaping | $ 1,500 | ||
(To record depreciation upto Dec 31, 2017) | |||
Dec-31 | Depreciation on Equipment | $ 35,000 | |
Acc. Depreciation on Equipment | $ 35,000 | ||
(To record depreciation for 2018) | |||
Dec-31 | Depreciation on Landscaping | $ 2,000 | |
Acc. Depreciation on Landscaping | $ 2,000 | ||
(To record depreciation for 2018) |
In 2018, the internal auditors of KJI Manufacturing discovered the following material errors made in prior...
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