During the preparation of the 2023 financial reports of Lim Ltd an error was identified. Unpaid rent
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Question:
During the preparation of the 2023 financial reports of Lim Ltd an error was identified. Unpaid rent was not accrued at the end of the 2022 financial year. An additional $10,000 rent expense should have been Included in both the 2022 statement of comprehensive income and income tax return. The tax rate is 30%.
REQUIRED:
i) the journal entry in 2023 to correct the error (Narration are required)
(ii) assuming the effect is material, an appropriate supporting note to the accounts.
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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