Question
In 2021, internal auditors discovered that PKE Displays, Inc., had debited an expense account for the $480,000 cost of a equipment purchased on January 1,
In 2021, internal auditors discovered that PKE Displays, Inc., had debited an expense account for the $480,000 cost of a equipment purchased on January 1, 2018. The equipment's useful life was expected to be six years with no residual value. Straight-line depreciation is used by PKE.
Ignoring income taxes, what is the journal entry PKE use to correct the error?
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Financial Accounting and Reporting
Authors: Barry Elliott, Jamie Elliott
17th edition
978-0273778172, 027377817X, 978-1292080505
