During 2020, Silver Corp. spent $12,000 to repair its mining equipment. Rather than debiting these costs...

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During 2020, Silver Corp. spent $12,000 to repair its mining equipment. Rather than debiting these costs to Repair and Maintenance Expense, Silver recorded the following journal entry: Dr. Equipment Cr. Cash 12,000 12,000 Assuming Silver discovered this error during 2020 (i.e., the year in which the error occurred), what journal entry (or entries) would Silver need to make to correct this error? (You can assume Silver has not recorded any depreciation expense on the equipment.) During 2020, Silver Corp. spent $12,000 to repair its mining equipment. Rather than debiting these costs to Repair and Maintenance Expense, Silver recorded the following journal entry: Dr. Equipment Cr. Cash 12,000 12,000 Assuming Silver discovered this error during 2020 (i.e., the year in which the error occurred), what journal entry (or entries) would Silver need to make to correct this error? (You can assume Silver has not recorded any depreciation expense on the equipment.)

Answer rating: 100% (QA)

Silver Corp must reverse the incorrect entry and record the expense correctly ... View the full answer