Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

After the year end, an auditor noticed that VHM Inc accidentally recorded an insurance expenditure of $57,000 as an expense instead of properly recording it

image text in transcribed
After the year end, an auditor noticed that VHM Inc accidentally recorded an insurance expenditure of $57,000 as an expense instead of properly recording it as a prepaid. The expenditure was made on the last day of the fiscal period, March 31, 2020. Write the journal entry that should be recorded to correct the prepaid insurance account Assume the tax rate is 33%. Do not enter dollar signs or commas in the input boxes. Enter Debit accounts before Credit accounts. Enter the credit accounts in alphabetical order Debit Credit Date Account Title and Explanation Mar 31 To correct prior period error

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Home Energy Audit Your Guide To Understanding And Reducing Your Home Energy Costs

Authors: Richard Montgomery

1st Edition

0471864668, 978-0471864660

More Books

Students also viewed these Accounting questions

Question

Can organizations execute an unlimited number of projects? Why?

Answered: 1 week ago

Question

What is Ramayana, who is its creator, why was Ramayana written?

Answered: 1 week ago

Question

To solve by the graphical methods 2x +3y = 9 9x - 8y = 10

Answered: 1 week ago

Question

b. Why were these values considered important?

Answered: 1 week ago