Question: Lindy Company's auditor discovered several errors. No errors were corrected during 2020. The errors are described as follows: A machine with a 4-year life was
Lindy Company's auditor discovered several errors. No errors were corrected during 2020. The errors are described as follows:
A machine with a 4-year life was purchased on July 1, 2019. The machine cost $18,000.00 and has no expected salvage value. No depreciation was taken in 2020 or 2021. Assume the straight-line method for depreciation.
Prepare appropriate journal entries to correct the error, and any adjusting entries required (assume the 2021 books have not been closed). Ignore income taxes. (If no entry is required for a transaction/event, select "No journal entry required.")
a)identify the J/E made error
b) Identify the J/E that should have been made
c) Provide the correcting J/E to fix the error
d)year end adjusting entry
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
