Pharoah Co. purchased machinery that cost $2600000 on January 4, 2016. The entire cost was recorded...
Pharoah Co. purchased machinery that cost $2600000 on January 4, 2016. The entire cost was recorded as an expense. The machinery has a 9-year life and a $160000 residual value. The error was discovered on December 20, 2018. Ignore income tax considerations. Before the correction was made, and before the books were closed on December 31, 2018, retained earnings was understated by
Homework Answers
Add Answer to:
Pharoah Co. purchased machinery that cost $2600000 on January 4,
2016. The entire cost was recorded...
"Cuthbert Industrials, Inc. prepares three-year comparative financial statements. In year 3, Cuthbert discovered an error in...
"Cuthbert Industrials, Inc. prepares three-year comparative financial statements. In year 3, Cuthbert discovered an error in the previously issued financial statements for year 1. The error affects the financial statements that were issued in years 1 and 2. How should the company report the error?" The financial statements for years 1 and 2 should not be restated; the cumulative effect of the error on years 1 and 2 should be reflected in the carrying amounts of assets and liabilities as...
12-72 t purchased on June 30, 2020, with a cost of $65,000, salvage value of $4,500...
12-72
t purchased on June 30, 2020, with a cost of $65,000, salvage value of $4,500 and a useful life ol 8 years was incorrectly entered into the depreciation system as having a useful life of 18 years Required Prepare entries to correct each of the errors a, b, and c, discovered in 2021. Ignore income taxes. Beckham Co Exercise 12-72 rporation had never been audited before December 31, 2020, the current year. Before the arrival of the auditor, the...
Exercise 2—Noncounterbalancing error. Quigley Co. bought a machine on January 1, 2016 for $2,800,000. It had...
Exercise 2—Noncounterbalancing error. Quigley Co. bought a machine on January 1, 2016 for $2,800,000. It had a $240.000 estimated residual value and a ten-year life. An expense account was debited on the purchase date. Quigley uses straight-line depreciation. This was discovered in 2018. Instructions Prepare the entry or entries related to the machine for 2018. Ignore taxes.
In 2021, internal auditors discovered that PKE Displays, Inc. had debited an expense account for the $369,000 cost of equipment purchased on January 1, 2018. The equipment’s life was expected to be five years with no residual value. Straight-line deprecia
In 2021, internal auditors discovered that PKE Displays, Inc. had debited an expense account for the $369,000 cost of equipment purchased on January 1, 2018. The equipment’s life was expected to be five years with no residual value. Straight-line depreciation is used by PKE. Required:1. Determine the cumulative effect of the error on net income over the three-year period from 2018 through 2020, and on retained earnings by the end of 2020.2. Prepare the correcting entry assuming the error was...
The Canliss Milling Company purchased machinery on January 2, 2016, for $990,000. A five-year life was...
The Canliss Milling Company purchased machinery on January 2, 2016, for $990,000. A five-year life was estimated and no residual value was anticipated. Canliss decided to use the straight-line depreciation method and recorded $198,000 in depreciation in 2016 and 2017. Early in 2018, the company changed its depreciation method to the sum-of-the-years’-digits (SYD) method. Required: 2. Prepare any 2018 journal entry related to the change. (If no entry is required for a transaction/event, select "No journal entry required" in the...
In January 2017, installation costs of $5,800 on new machinery were charged to Maintenance and Repairs...
In January 2017, installation costs of $5,800 on new machinery
were charged to Maintenance and Repairs Expense. Other costs of
this machinery of $29,000 were correctly recorded and have been
depreciated using the straight-line method with an estimated life
of 10 years and no salvage value. At December 31, 2018, it is
decided that the machinery has a remaining useful life of 20 years,
starting with January 1, 2018. What entries should be made in 2018
to correctly record transactions...
In 2021, internal auditors discovered that PKE Displays, Inc. had debited an expense account for the...
In 2021, internal auditors discovered that PKE Displays, Inc. had debited an expense account for the $369,000 cost of equipment purchased on January 1, 2018. The equipment's life was expected to be five years with no residual value. Straight-line depreciation is used by PKE Required: 1. Determine the cumulative effect of the error on net income over the three-year period from 2018 through 2020, and on retained earnings by the end of 2020. 2. Prepare the correcting entry assuming the...
In 2021, internal auditors discovered that PKE Displays, Inc. had debited an expense account for the...
In 2021, internal auditors discovered that PKE Displays, Inc. had debited an expense account for the $362,000 cost of equipment purchased on January 1, 2018. The equipment’s life was expected to be five years with no residual value. Straight-line depreciation is used by PKE. Required: 1. Determine the cumulative effect of the error on net income over the three-year period from 2018 through 2020, and on retained earnings by the end of 2020. 2. Prepare the correcting entry assuming the...
Question 30 In January 2017, installation costs of $6,500 on new machinery were charged to Maintenance...
Question 30
In January 2017, installation costs of $6,500 on new machinery
were charged to Maintenance and Repairs Expense. Other costs of
this machinery of $32,500 were correctly recorded and have been
depreciated using the straight-line method with an estimated life
of 10 years and no salvage value. At December 31, 2018, it is
decided that the machinery has a remaining useful life of 20 years,
starting with January 1, 2018. What entries should be made in 2018
to correctly...
On January 3, 2016, Bonita Industries purchased machinery. The machinery has an estimated useful life of...
On January 3, 2016, Bonita Industries purchased machinery. The
machinery has an estimated useful life of eight years and an
estimated salvage value of $121000. The depreciation applicable to
this machinery was $269000 for 2018, computed by the
sum-of-the-years'-digits method. The acquisition cost of the
machinery was
$1452000.
$1735000.
$1614000.
$1927000.
12-72
t purchased on June 30, 2020, with a cost of $65,000, salvage value of $4,500 and a useful life ol 8 years was incorrectly entered into the depreciation system as having a useful life of 18 years Required Prepare entries to correct each of the errors a, b, and c, discovered in 2021. Ignore income taxes. Beckham Co Exercise 12-72 rporation had never been audited before December 31, 2020, the current year. Before the arrival of the auditor, the...
Exercise 2—Noncounterbalancing error. Quigley Co. bought a machine on January 1, 2016 for $2,800,000. It had a $240.000 estimated residual value and a ten-year life. An expense account was debited on the purchase date. Quigley uses straight-line depreciation. This was discovered in 2018. Instructions Prepare the entry or entries related to the machine for 2018. Ignore taxes.
In January 2017, installation costs of $5,800 on new machinery
were charged to Maintenance and Repairs Expense. Other costs of
this machinery of $29,000 were correctly recorded and have been
depreciated using the straight-line method with an estimated life
of 10 years and no salvage value. At December 31, 2018, it is
decided that the machinery has a remaining useful life of 20 years,
starting with January 1, 2018. What entries should be made in 2018
to correctly record transactions...
In 2021, internal auditors discovered that PKE Displays, Inc. had debited an expense account for the $369,000 cost of equipment purchased on January 1, 2018. The equipment's life was expected to be five years with no residual value. Straight-line depreciation is used by PKE Required: 1. Determine the cumulative effect of the error on net income over the three-year period from 2018 through 2020, and on retained earnings by the end of 2020. 2. Prepare the correcting entry assuming the...
Question 30
In January 2017, installation costs of $6,500 on new machinery
were charged to Maintenance and Repairs Expense. Other costs of
this machinery of $32,500 were correctly recorded and have been
depreciated using the straight-line method with an estimated life
of 10 years and no salvage value. At December 31, 2018, it is
decided that the machinery has a remaining useful life of 20 years,
starting with January 1, 2018. What entries should be made in 2018
to correctly...
On January 3, 2016, Bonita Industries purchased machinery. The
machinery has an estimated useful life of eight years and an
estimated salvage value of $121000. The depreciation applicable to
this machinery was $269000 for 2018, computed by the
sum-of-the-years'-digits method. The acquisition cost of the
machinery was
$1452000.
$1735000.
$1614000.
$1927000.
Most questions answered within 3 hours.
-
A
student bought $1000 worth of furniture. What is the equivalent
annual cost if it is...
asked 11 minutes ago -
What is the net ionic equation for the reaction that would occur
when an aqueous solution...
asked 3 minutes ago -
What taboo subject did Ida B. Wells suggest was consensual
between black men and white women?...
asked 1 hour ago -
You have just been hired by the EPA to help with the new gas
mileage standards...
asked 2 hours ago -
4) A firm is hit by increases in its wage rate, w.
a) How does this...
asked 2 hours ago -
A square current loop 5.4 cm on each side carries a 510 mA
current. The loop...
asked 4 hours ago -
What are five tips in conducting knowledge assessment/literature
review research? Each of these tips needs to...
asked 5 hours ago -
Antigen presenting cells link innate and adaptive immune
responses. In the theoretical scenario where phagosomes cannot...
asked 5 hours ago -
Dealing with conflict, in my opinion, is a skill and an art. I
believe that those...
asked 6 hours ago -
6. A long straight wire with circular cross section and radius
1.5 cm carries a 1.2...
asked 6 hours ago -
Deacon Corporation has provided the following financial data
from its balance sheet and income statement:
Year...
asked 7 hours ago -
List and discuss at least three variables from everyday life for
which you expect the variable ...
asked 7 hours ago