On December 12, 2021, an investment in equity securities costing $80,000 was sold for $100,000. The total
Question:
On December 12, 2021, an investment in equity securities costing $80,000 was sold for $100,000. The total of the sale proceeds was credited to the investment in equity securities account.
Required:
1. Prepare the journal entry to correct the error, assuming it is discovered before the books are adjusted or closed in 2021. (Ignore income taxes.)
2. Prepare the journal entry to correct the error assuming it is not discovered until early 2022. (Ignore income taxes.)
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Question Posted: