At the end of 2019, while preparing its financial statements, Pharoah Ltd. discovered an error in its accounting records. A truck with an original cost of $15,500, a service life of 4 years, and a residual value of $3,500 was expensed when it was purchased at the beginning of 2018. The company was subject to an income tax rate of 40%. Pharoah used the straight-line method of depreciation for vehicles and follows ASPE.

Prepare the journal entries to correct the error and record depreciation for 2019. (Credit account titles are automatically indented when the amount is entered.Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

(To record correction of prior year error.)

(To record depreciation expense.)

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