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Exercise 2—Noncounterbalancing error. Quigley Co. bought a machine on January 1, 2016 for $2,800,000. It had a $240.000 estim
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Answer #1
Journal entries
Date ACCOUNT TITLES AND EXPLANATIONS DEBIT ($) CREDIT ($)
31-Dec-18 Equipment Account      2,800,000.00
Retained Earnings (Balancing Figure)      2,288,000.00
Accumulated Depreciation of equipment [((2,800,000-240,000) / 10) x 2]        512,000.00
(To correct the error)
31-Dec-18 Depreciation Expense [(2,800,000-240,000) / 10]        256,000.00
Accumulated Depreciation of equipment        256,000.00
(To record depreciation expense)
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