Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On December 12, 2021, an investment in equity securities costing $76,000 was sold for $92,000. The total of the sale proceeds was credited to the

On December 12, 2021, an investment in equity securities costing $76,000 was sold for $92,000. The total of the sale proceeds was credited to the investment in equity securities account. Required: 1. Prepare the journal entry to correct the error, assuming it is discovered before the books are adjusted or closed in 2021. (Ignore income taxes.) 2. Prepare the journal entry to correct the error assuming it is not discovered until early 2022. (Ignore income taxes.)

1. Investment in equity-16 answer incorrect (92-76)=16. (connect is saying 16 is incorrect)

Gain on investments -16selected answer incorrect

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

Microeconomics Theory And Applications

Authors: Edgar K. Browning, Mark A. Zupan

13th Edition

1119368928, 9781119368922

More Books

Students also viewed these Accounting questions

Question

Why am i getting this error?

Answered: 1 week ago