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Faulty Company's year end ifs December 31. Its external auditors have discovered that two years ago a couple of transactions were put through Faulty's books
Faulty Company's year end ifs December 31. Its external auditors have discovered that two years ago a couple of transactions were put through Faulty's books twice: \begin{tabular}{lrr} Dr Cash & $58,280 & \\ Cr Miscellaneous Revenue & & $58,280 \\ Dr Rent Expense & $36,400 & \\ Cr Cash & & $36,400 \end{tabular} Assume that Faulty has such an incompetent bookkeeper that no bank reconciliations has been done since then. Solve the situation in one journal entry and ignore income tax implications. Required 1: Correction of an error in previous years requires a prior period adjustment. What is the amount to report in the Cash account when credited? \$ Required 2: Correction of an error in previous years requires a prior period adjustment. What is the amount to report in the Cash account when debited? \$ Required 3: Correction of an error in previous years requires a prior period adjustment. What is the amount to report in the Rent Expense when credited? \$ Required 4: Correction of an error in previous years requires a prior period adjustment. What is the amount to report in the Rent Expense when debited? \$ Required 5: Correction of an error in previous years requires a prior period adjustment. What is the amount to report in the Miscellaneous Revenue when debited? \$ Required 6: Correction of an error in previous years requires a prior period adjustment. What is the amount to report in the Miscellaneous Revenue account when credited? \$
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