In December 2014, the company paid $1,800 for insurance for the first six months of 2015. This

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In December 2014, the company paid $1,800 for insurance for the first six months of 2015. This payment was mistakenly recorded as insurance expense in 2014. Make the necessary correcting entry, assuming that

(1) The error was found in August 2015 after the 2014 books had been closed

(2) The error was found in August 2016 after the 2015 books had been closed. Ignore income taxes.

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Intermediate Accounting

ISBN: 978-1133957911

19th edition

Authors: Earl K. Stice, James D. Stice

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Question Posted: Oct 05, 2016 08:17 AM

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In December 2014, the company paid $1,800 for insurance for the first six months of 2015. This

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1 Insurance Expense 1800 Retained Earnings 1800 2 No correcting entry is necessary ...View the full answer

Intermediate Accounting

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