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Please help! Accountants at Associates Corporation incorrectly journalized a $60

ID: 2350192 • Letter: P

Question

Please help!

Accountants at Associates Corporation incorrectly journalized a $60,000 equipment purchase as a debit to Buildings. This error was not discovered before the journal entry was posted. What is the correcting entry?
Debit Buildings and Credit Equipment for $120,000 each.
Debit Buildings and Credit Equipment for $60,000 each.
Debit Equipment for $120,000 and Credit Buildings for $60,000.
Debit Equipment and Credit Buildings for $120,000 each.
Debit Equipment and Credit Buildings for $60,000 each.

Explanation / Answer

Debit Equipment for $120,000 and Credit Buildings for $60,000.