Question
Before the 20X1 books rae closed, you discover that on January 2, 20X1, when a new machine was purchased for $20,000 was debited to Machinery
Before the 20X1 books rae closed, you discover that on January 2, 20X1, when a new machine was purchased for $20,000 was debited to Machinery Maintenance Expense.The new machine, which is being depreciated under the straight-line method, has a 10-year life and no estimated salvage value.However, because of the error, no depreciation was recorded for the year.If no correction is made...
net income for 20X1 will be understated by $18,000
net income for 20X1 will be understated by $2,000
total assets on the December 31, 20X1 balance sheet will be understated by $20,000
the trial balance will not balance
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