Question: Lindy Company's auditor discovered two errors. No errors were corrected during 2022. The errors are described as follows: (1.) Merchandise costing $4,800 was sold to

Lindy Company's auditor discovered two errors. No errors were corrected during 2022. The errors are described as follows:

(1.) Merchandise costing $4,800 was sold to a customer for $10,800 on December 31, 2022, but it was recorded as a sale on January 2, 2023. The merchandise was properly excluded from the 2022 ending inventory. Assume the periodic inventory system is used.

(2.) A machine with a five-year life was purchased on January 1, 2022. The machine cost $24,000 and has no expected salvage value. No depreciation was taken in 2022 or 2023. Assume the straight-line method for depreciation.

Required: Prepare appropriate journal entries (assume the 2023 books have not been closed). Ignore income taxes.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Lindy Company's auditor discovered two errors. No errors were corrected during 2 0 2 3 . The errors are described as follows: Merchandise costing $ 3 , 7 0 0 was sold to a customer for $ 8 , 7 0 0 on...

(11 points) Entity A has been using the double-declining balance depreciation method to depreciate some office equipment that was acquired at the beginning of 2014. At the beginning of 2016, Entity A...

Lindy Company's auditor discovered two errors. No errors were corrected during 2 0 2 3 . The errors are described as follows: Merchandise costing $ 4 , 4 0 0 was sold to a customer for $ 9 , 4 0 0 on...

Lindy Company's auditor discovered two errors. No errors were corrected during 2 0 2 3 . The errors are described as follows: Merchandise costing $ 3 , 1 0 0 was sold to a customer for $ 8 , 1 0 0 on...

Lindy Company's auditor discovered two errors. No errors were corrected during 2015. The errors are described as follows: Merchandise costing $3,000 was sold to a customer for $8,000 on December 31,...

Lindy Company's auditor discovered two errors. No errors were corrected during 2010. The errors are described as follows: Merchandise costing $4,000 was sold to a customer for $9,000 on December 31,...

Lindy Company's auditor discovered several errors. No errors were corrected during 2020. The errors are described as follows: Merchandise costing $3,000.00 was sold to a customer for $6,750.00 on...

1. On February 2, 2011, MBH Inc. acquired 30% of the voting common stock of Construction Corporation as a long-term investment. Data from Construction Corporation's financial statements for the year...

TB Problem 20-126 (Algo) 1 Lindy Company's auditor discovered two errors. No errors were corrected during 2020. The chose described as foc in Merchandise costing $2.900 was sold to a customer for...

The table gives the demand and supply schedules for chocolate brownies. a. If brownies are not taxed, what is the price of a brownie and how many are bought? b. If sellers are taxed 20 a brownie,...

A list of committed and discretionary costs follows. Annual audit fees ............Internal audit salaries Annual report preparation and printing ....Marketing research Building flood insurance...

The director of admissions at a large university advises parents of incoming students about the cost of textbooks during a typical semester. He selected a sample of 100 students and recorded their...

10) For a bond that pays cash interest (i.e., not a zero coupon bond), YTM is (a) always equal to the coupon rate (b) always equal to the current yield (c) is always less than the coupon rate (d) can...

Discuss three reasons why recruiting is important to organizational success.

Evaluate the importance of diversity in the workforce.

Identify the legal standards of the recruitment process.