. Provide journal entries correct the errors in Q4a and Q4b.

Q4a. On Jan 1, 2017 Davis Co. bought equipment for $750,000. The entire amount was recorded as an expense. The equipment had a nine-year life and a $30,000 residual value. Davis used the straight-line method of depreciation. The error was discovered on Dec 10, 2019. Davis is subject to a 35% tax on income. Provide the journal entries required to correct the error when it was discovered on Dec 10, 2019. [1 marks]

You must show plausible calculations to get credit

		Dr.	Cr.

Q4. Continued. Provide journal entries needed to correct the error made by Scorpion Inc. in Q4b.

Q4b. On June 1, 2019 Scorpion Inc, made a credit sale of $761 to Hannah Co. The terms were 2/10 n 30. Hannah paid for the goods on June 20, with a check made out for the correct amount. However, Scorpions bookkeeper recorded the check at $716. The error was discovered when the Bank Cash Reconciliation was made on June 30. Provide the journal entry needed to correct Scorpions error. [1 marks]

	Dr.	Dr.