At the end of 2016, while preparing its financial statements, Cullumber Ltd. discovered an error in its accounting records. A truck with an original cost of $15,300, a service life of 5 years, and a residual value of $3,800 was expensed when it was purchased at the beginning of 2015. The company was subject to an income tax rate of 39%. Cullumber used the straight-line method of depreciation for vehicles and follows ASPE.

Prepare the journal entries to correct the error and record depreciation for 2016. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

 

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Account Titles and Explanation (To record correction of prior year error.) (To record depreciation expense.) Debit Credit Account Titles and Explanation (To record correction of prior year error.) (To record depreciation expense.) Debit Credit

Answer rating: 100% (QA)

Jou nalize Puties and record to Correct Dr depreci... View the full answer