Question: Lindy Company's auditor discovered two errors. No errors were corrected during 2020. The errors are described as follows: (1) Merchandise costing $4,200 was sold

The errors are described as follows: (1) Merchandise costing $4,200 was sold

Lindy Company's auditor discovered two errors. No errors were corrected during 2020. The errors are described as follows: (1) Merchandise costing $4,200 was sold to a customer for $9,200 on December 31, 2020, but it was recorded as a sale on January 2, 2021. The merchandise was properly excluded from the 2020 ending inventory. Assume the periodic inventory system is used. (2) A machine with a five-year life was purchased on January 1, 2020. The machine cost $22,000 and has no expected salvage value. No depreciation was taken in 2020 or 2021. Assume the straight-line method for depreciation. Required: Prepare appropriate journal entries (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" in the first account field.) View transaction list Journal entry worksheet Merchandise costing $4,200 was sold to a customer for $9,200 on December 31, 2020, but it was recorded as a sale on January 2, 2021. The merchandise was properly excluded from the 2020 ending inventory. Assume the periodic inventory system is used. Note: Enter debits before credits. Transaction General Journal Debit Credit

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!

(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 , 7 0 0 was sold to a customer for $ 8 , 7 0 0 on...

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...

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...

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 two errors. No errors were corrected during 2020. The errors are described as follows: (1) Merchandise costing $3,300 was sold to a customer for $8,300 on December...

The costs of a company's call center for a number of recent months are listed below: Call Center Cost 8,460 $ 91,717 8,429 $91,548 8,470 $ 91,777 8,469 $ 91,759 8,433 8,444 8,486 $ 91,567 $91,605...

Estimate (a) How long it took King Kong to fall straight down from the top of the Empire State Building (380 m high), and (b) His velocity just before landing?

What is the relationship between quantity demanded and quantity supplied at equilibrium? What is the relationship when there is a shortage? What is the relationship when there is a surplus?

List the complete term for the following acronyms:RISIROIDSIDAECHIS

19.8. If it was known that management was selling shares at the same time as it was increasing leverage, how would this affect the credibility of the signal? Why? What other actions or motivations by...

19.2. Why might a firm choose to increase its debt level in response to favorable information about its future prospects?

19.10. Analysts project that Infotech, an information services company, will have the following financial data for equally probable high and low states: Value State: Low High Cash $100 $100 Fixed...