Question
In 2020, Dody Corporation discovered that equipment purchased on January 1, 2018, for $152,500 was expensed in error at that time. The equipment should have
In 2020, Dody Corporation discovered that equipment purchased on January 1, 2018, for $152,500 was expensed in error at that time. The equipment should have been depreciated over five years, with no residual value. The tax rate is 30%. Prepare Dodys 2020 journal entry to correct the error and record 2020 depreciation. Assume income was reported accurately for tax purposes in all years. (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.)
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
Jan. 1 | enter an account title for the journal entry on January 1 | enter a debit amount | enter a credit amount |
enter an account title for the journal entry on January 1 | enter a debit amount | enter a credit amount | |
enter an account title for the journal entry on January 1 | enter a debit amount | enter a credit amount | |
enter an account title for the journal entry on January 1 | enter a debit amount | enter a credit amount | |
enter an account title for the journal entry on January 1 | enter a debit amount | enter a credit amount |
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