Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Doodle Inc. has its auditors reviewing its accounts at the beginning of 2022 (after the 2021 books have been closed). The auditors have discovered three

Doodle Inc. has its auditors reviewing its accounts at the beginning of 2022 (after the 2021 books have been closed). The auditors have discovered three separate errors. Ignoring income taxes, give the journal entries that Doodle should make at the beginning of 2022 to correct these errors: (1) ending inventory for 2021 was overstated by $23,0002) interest expense of $12,000 that should have been accrued at the end of 2021 was not recorded; the interest has already been paid in 2022 and was recorded at that time as interest expense(3) a piece of equipment with an eight-year life was purchased at the beginning of 2018 for $130,000 ($10,000 estimated salvage value), but the accountant inadvertently expensed the entire cost when the asset was purchased. Doodle uses straight-line depreciation for its fixed assets. Show your work. Label your answers. Thanks!

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

Step: 3

blur-text-image

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

Management Accounting International

Authors: Anthony A. Atkinson, Robert S. Kaplan, S. Mark Young

4th Edition

0131230263, 978-0131230262

More Books

Students also viewed these Accounting questions

Question

Divide. 24hk+56hk-28hk 16hk

Answered: 1 week ago