Question
On July 9, 2021,SheridanEnterprises Inc. discovered it had recorded the $70,000purchase of land as legal expense on November 8, 2020. The company had reported retained
On July 9, 2021,SheridanEnterprises Inc. discovered it had recorded the $70,000purchase of land as legal expense on November 8, 2020. The company had reported retained earnings of $533,500at its previous year end, December 31, 2020.
During 2021,Sheridanhad profit of $179,000and it declared and paid cash dividends of $201,000.Sheridanhas a25% income tax rate.
Prepare the journal entry to correct the error? ( 3 entries)
a statement of retained earnings?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Accounting Principles Part 3
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
6th Canadian edition Volume 1
1118306805, 978-1118306802
