Bonn Company has made some accounting errors, all discovered before the books were closed in 2020.
The correction for each is required, but I included a recommended worksheet to solve.
A. A machine was purchased for $50,000 with cash in January 2019. It was charged to Repair Expense. The machine has a five year life
and a salvage value of $10,000. Bonn uses straight line depreciation. No depreciation has been recorded in 2020.
What they did in 2019 and 2020				What they should have done 2019						Correction in 2020

B

A check was received for $21,000 for three years of rent beginning January 1, 2019. The entire amount was charged to Rent Revenue.
The check was received January 3, 2019.
What they did in 2019 and 2020				What they should have done 2019 and 2020						Correction in 2020