Question: On April 1 , 2 0 2 1 , the following 2 0 2 0 error was discovered after the 2 0 2 0 financial

On April 1,2021, the following 2020 error was discovered after the 2020 financial statements were issued. In 2020, fully depreciated equipment with an original cost of $75,000 and no salvage value was sold for $6,000. The companys entry for the sale was a debit to Cash for $6,000 and a credit to Equipment for $6,000.
The correcting journal on April 1,2021 includes
A credit to Retained Earnings-Prior Period Adjustment account by $6,000.
A credit to Equipment account by $75,000.
A credit to Gain on Sale of Equipment account by $6,000.
A debit to Accumulated Depreciation account by $69,000.

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!

Q:

hi, I need help doing the quarterly proforma for Comfort Zone, I have attached the case and the excel template for the proforma. Please, make sure to use the information from the case. thank you....

Q:

Please help with the problems that are in this document.Thanks ACC422 - Intermediate Accounting II Individual Assignments - Week 2 This assignment is worth a total of 75 points distributed evenly...

Q:

On April 1 2 0 2 4 Western Communications Incorporated issued 1 2 bonds dated March 1 2 0 2 4 with face amount of 4 4 million

Q:

please help as i am lost The cholesterol level of patients who had heart attacks was measured two days after the heart attack and then again four days after the heart attack.The researchers want to...

Q:

The prenny company purchased some equipment on april 1 , 2 0 2 2 for 3 6 2 4 0 and expects to use it for eight years at which time it can be sold for an estimated 3 6 0 0 . the company sold the...

Q:

our answer is partially correct. Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance For the year ended December 3 1 , 2 0 2 5 The following schedule of capital assets...

Q:

EN - US 1 . 2 0 points Consider the following CFG G . S - > XX | Y X - > aXb | c Y - > bbY c | a ( a ) Create MG , an augmented PDA from G . ( b ) Consider the augmented transition in the PDA created...

Q:

Please complete both correctly and I will give good rating 1.) 2.) 0 Required Information [The following information applies to the questions displayed below. The fixed budget for 21,100 units of...

Q:

Hello, Can someone please help me with this assignment? Please see attached file. Multiple Choice 1. On January 1 of the current year, Tire Company enters into a five-year lease agreement for...

Q:

Case Study #3 - Financial Statement Review (Instructions) For Assignment #3, we will be using the financial statement for year ending March 31, 2021, that is located on the Internet for the not for...

Q:

Gloria is a successful home baker who specialises in cakes that are lower in sugar. She is trying to decide whether to take a lease on a shop and set up a permanent business. She has collected the...

Q:

Identify the accounts in which each of the following transactions for Oak Leaf Furniture, a custom manufacturer of oak tables and chairs, would be debited and credited: 1. Issued oak materials into...

Q:

True or False? In Sage 5 0 , you are required to allocate 1 0 0 % of the transaction to projects. Group of answer choices

Q:

9. (15 points) A company is considering a new project that requires an investment of \$5 million. The project is expected to generate cash flows of $2 million in year 1,$3 million in year 2, and $4...

Q:

State the meaning of performance appraisal and performance management and distinguish between the two.

Q:

Put forward reasoned proposals on how to set up and operate a basic performance management system.

Q:

Appreciate the role of human resources in effectively handling procedures.