Holmes Limited purchases a delivery truck for $14,000 on January 1, 2019. Holmes expects to use the truck for only two years and then sell it for $4,000. The accountant is instructed to use straight-line depreciation but neglects to record any depreciation in 2019. Rather, the accountant charges the entire cost to delivery expense in 2019. The company controller discovers the error late in 2020.

Required:

Provide the 2020 entries to record depreciation and the error correction. Assume a tax rate of 30%.

2020	Debit	Credit
To record depreciation expense
To record the error correction

Answer rating: 100% (QA)

To record the depreciation expense in 2020 and correct the error from 2019 the following journal ent... View the full answer