Chapter 4 Assign Accounting Errors due hard copy at the beginning of class Wednesday, Oct 17th Question 1. A4-4 (textbook, page 1961197) a . d . g- l b. 6. h. k C. f. i Question 2 On January 1, 2015, Harnden Inc. posted a repair expense bill of $100,000 to the equipment account instead of the repair expense account. You are the new accountant for this business and you are in the process of preparing the 2016 financial statements when you notice that the $100,000 expenditure was recorded incorrectly in 2015. The expenditure, posted in the equipment account, was also set up to be depreciated on a straight line basis. The assumed salvage value was $0 and the expected useful life was 10 years. The tax rate is 30%. The unadjusted balance in retained earnings at January 1, 2016 was $725,000. The company had a net income of $500,000 and paid dividends of $45,000 during 2016. Required: a) Calculate the earnings correction that Harnden must show in the 2016 financial statements. b) Prepare the 2016 entry to record the correction of the 2015 error. General Journal Account Titles and Explanation c) Present the retained earnings reconciliation that would appear on Harnden's statement of changes in equity. Statement of Retained Earnings For the year ending December 31, 2016