Check my work 1 In December of 2018, XL Computer\'s internal auditors discovered

Question

Check my work 1 In December of 2018, XL Computer's internal auditors discovered that office equipment costing $770,000 was charged to expense in 2016. The asset had an expected life of 10 years with no residual value. XL would have recorded a half year of depreciation in 2016. Required Prepare the necessary correcting entry that would be made in 2018 (ignore income taxes), and the entry to record depreciation for 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) points Skipped View transaction list eBook Print References Journal entry worksheet Record the correcting entry. Note: Enter debits before credits Transaction General Journal Debit Credit

Explanation / Answer

Depreciation that should have been recorded in prior years on the equipment:
  2016: $770,000 / 10 years = $77,000 x 6/12 =$38,500
2017: $770,000 / 10 years = $77,000
Total = $115,500

Transaction General Journal Debit Credit 1 Equipment $770,000   Accumulated depreciation-equipment $115,500   Retained earnings $654,500 2 Depreciation expenses $77,000 Accumulated depreciation-equipment $77,000

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---