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Lindy Company's auditor discovered two errors. No errors were corrected during 2023. The errors are described as follows: 1....

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Lindy Company's auditor discovered two errors. No errors were corrected during 2023. The errors are described as follows: 1. Merchandise costing $4,900 was sold to a customer for $9,900 on December 31, 2023, but it was recorded as a sale on January 2, 2024. The merchandise was properly excluded from the 2023 ending inventory. Assume the periodic inventory system is used. 2. A machine with a four-year life was purchased on January 1, 2023. The machine cost $29,000 and has no expected salvage value. No depreciation was taken in 2023 or 2024. Assume the straight-line method for depreciation. Required: Prepare appropriate journal entries (assume the 2024 books have not been closed). Ignore income taxes. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

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journal entries for the two errors To correct the mer View the full answer


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Accounting Principles

Accounting Principles

ISBN: 978-1119048473

7th Canadian Edition Volume 2

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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Posted Date: August 25, 2023 07:04:28
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