Adjusting entries for depreciation; effect of error OBJ. 2, 3 On December 31, a business estimates depreciation

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Adjusting entries for depreciation; effect of error OBJ. 2, 3 On December 31, a business estimates depreciation on equipment used during the first year of operations to be $13,900.

a. Journalize the adjusting entry required as of December 31.

b. If the adjusting entry in

(a) were omitted, which items would be erroneously stated on (1) the income statement for the year and (2) the balance sheet as of December 31?

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Financial And Managerial Accounting

ISBN: 9781305267831,9781305267848

13th Edition

Authors: Carl S. Warren , James M. Reeve , Jonathan Duchac

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