FREE Trial

In fiscal 2013, Minaki Inc. (Minaki) pur chased machinery for $3,500,000. The machinery was supposed to be depreciated over 10

Question:

In fiscal 2013, Minaki Inc. (Minaki) pur chased machinery for $3,500,000. The machinery was supposed to be depreciated over 10 years on a straight-line basis, but for some reason, it wasn't. Minaki's new controller discovered the error in late 2017. Retained earnings on December 31, 2016, Minaki's last year-end, was $17,800,000.

Required:
Prepare the journal entry that must be made in Minaki's books to correct the error. What would retained earnings be on December 31, 2017 after the error had been corrected? Explain why the error is corrected in this way.

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Answer rating: 70% (10 reviews)

Dr Retained earnings equity 1 400 000 Cr Accumulated depreciation 1 400 000 Contra asset 3 500 0…View the full answer


answer-question
Answered By
tutor-profile-image
Fahmin Arakkal
Tutoring and Contributing expert question and answers to teachers and students. Primarily oversees the Heat and Mass Transfer contents presented on websites and blogs. Responsible for Creating, Editing, Updating all contents related Chemical Engineering in latex language
4.40+ 8+ Reviews 22+ Question Solved
Related Book For  answer-question
Financial Accounting A Critical Approach

Financial Accounting A Critical Approach

ISBN: 978-1259066528

4th edition

Authors: John Friedlan

See More Books
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: February 26, 2015 11:54:31
See More Questions

Students also viewed these Accounting questions

Q:
A particle moves on a straight line with velocity function v(t) = sin wt cos2 wt. Find its position function s = f(t) if f(0) = 0.
A:
s f t f sin wu cos......
Q:
A particle moves on a straight line with velocity function v(t) = sin t cos2 t. . Find its position function s= f(t) if f(0) = 0
A:
Let y cos......
Q:
Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (clay) 1.7...
A:
Fixed Overhead Spending Variance Budgeted Fixed Overhead Actual Fixed Overhead 222......
Q:
1Describe in a simplified manner the flow of information from gene to protein
A:
Most genes contain the information needed to make functional molecules called proteins The genes in DNA encode protein molecules which are the workhorses of the cell carrying out all the functions nec......
Q:
A company sells two products, Product A and Product B. Assume that the variable costs for each product are $7. In a particular market, men and women value the two products as follows: (a) If...
A:
a Since men 50 of market value Product A at 12 and Product B at 15 they would pay up to 27 for a bundle containing both products Since women 50 of mar......
Q:
Lakshmi Ltd. invited applications for 20,000 shares of `10 each, payable as follows: on application 4; on allotment 4; on final call 2. Applications were received for 25,000 shares. The directors...
A:
Date Bank A c Share Application A c Particulars To Share Application A c......
Q:
An organisation cannot develop, or change. It is the people comprising the organisation who determine the culture of the organisation, develop and change. The study of organisation culture and change...
A:
I agree with the statement that individuals within an organization play a pivotal role in shaping its culture driving development and facilitating change Organizations are ultimately a collective of p......
Q:
Worksheet data for DeSousa Company are presented in E4-2. The owner did not make any additional investments in the business in April. In E4-2, The adjusted trial balance columns of the worksheet for...
A:
DESOUSA COMPANY Income Statement For the Month Ended April 30 2014 Revenues Service revenue 15 590......
Q:
1. [10 points] Consider the following zero-sum game tree. The choices for the maximizing player are shown with triangles that point up, e.g., the root node, and the choices for the minimizing player...
A:
Click to View...
Q:
Carl owns 100% of the common shares of Extra Ltd., a Canadian-controlled private corporation operating a wholesale business in eastern Canada. Extras fiscal year end is May 31, 20X8. It is now April...
A:
Part 1 Part 2 Part 3 Extras 20X8 active business income of 558 000 is 58 000 above the small business deduction limit Consequently a higher corporate......
Q:
In fiscal 2017, Upshall Ltd. (Upshall) pur chased land for $250,000. For some reason, the land was expensed when it was pur chased. A new employee in the accounting department who was asked to review...
A:
Dr Land asset 250 000 Cr Retained earnings equity 250 000 The land had been expensed for......
Q:
Determine the missing amounts in 2015 through 2018 for the shaded areas in the tablebelow: 2014 2015 2016 2017 2018 Net income Other comprehensive income Comprehensive income Retained earnings...
A:
2014 2015 2016 2017 2018 Net income 42 000 195 000 101 000 155 000 O......
Q:
Dorothy Drury suffered from dementia and chronic confusion. When she became unable to manage her own affairs, including decisions about medical and financial matters, her son Eddie arranged for her...
A:
No Contracts made by mentally incompetent......
Q:
Either the wealthiest people are the happiest, or it is not the case that money can buy everything. The wealthiest people are not the happiest. Therefore, money cannot buy everything. (W, M)...
A:
Let s translate the given argument into symbolic notation using the provided letters and then interpret it in the context of the eight argument forms Either the wealthiest people are the happiest or i......
Q:
Either drivers are forbidden to send text messages, or the highways will not become safer. Drivers are forbidden to send text messages. Therefore, the highways will become safer. (D, H) Translate the...
A:
Symbolic Notation D Drivers are forbidden to send text messages H The highways will become safer Arg......
Q:
If TV viewing provides genuine relaxation, then TV enhances the quality of life. But TV viewing does not provide genuine relaxation. Therefore, TV does not enhance the quality of life. (G, E)...
A:
Let s translate the given argument into symbolic notation using the provided letters in parentheses......
Q:
Nano-thermite is present in the debris from the World Trade Center. But if that is so, then the buildings were brought down by controlled demolition. Therefore, the buildings were brought down by...
A:
To translate the given argument into symbolic notation and interpret them in light of the eight argument forms we can proceed step by step Argument Na......
Q:
If the sun is a variable star, then its energy will drop drastically at some point in the future. If the suns energy drops drastically at some point in the future, then the earth will become a giant...
A:
To translate the given argument into symbolic notation and analyze it in terms of the eight argument......
Q:
This diagram shows a toy of mass 60 g placed on the edge of a rotating turntable. a. The radius of the turntable is 15.0 cm. The turntable rotates, making 20 revolutions every minute. Calculate the...
A:
a The radius of the turntable is 15 0 cm The turntable rotates making 20 revolution......
Q:
The senior management at Davis Watercraft would like to determine if it is possible to improve firm profitability by changing their existing product mix. Currently, the product mix is determined by...
A:
a A B C Price 450 400 500 Material Cost 50 00 40 00 110 00 Contribution Margin 400 360 390 When orde......
Q:
The following are the major statement of financial position classifications: Intangible assets (IA) .............Equity (E) Property, plant, and equipment (PPE) ......Non-current liabilities (NCL)...
A:
CL Accounts payable CL Income tax payable C......
Q:
The trial balance columns of the worksheet for Lin Company at June 30, 2011, are as follows (in thousands). Other data: a. A physical count reveals HK$300,000 of supplies on hand. b. HK$100,000 of...
A:
LIN COMPANY Worksheet For the Month Ended June 30 2011 Account Titles......
Q:
The adjusted trial balance columns of the worksheet for Goode Company are as follows. Instructions Complete theworksheet GOODE COMPANY Worksheet (partial) For the Month Ended April 30, 2011 Adjusted...
A:
GOODE COMPANY Worksheet partial For the Month Ended April 30 2011 Adju......
Systems Analysis And Design 11th Edition - ISBN: 0137947801 - Free Book