Prepare the necessary adjusting entries for the following taking into account income tax effects $(40\%$ tax rate$)$ and assuming that

the books have been closed. $($Round answers to $0$ decimal places, e$.$g$.5,275.$ 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. List

all debit entries before credit entries.$)$

Depreciation on equipment for the year was erroneously recorded as $$4,800$ rather than the correct figure of $$48,000.$

A further review of depreciation calculations of prior years revealed that equipment depreciation of $$7,800$ was not

recorded. It was decided that this oversight should be corrected by a prior period adjustment.

No$.$ Account Titles and Explanation

Debit

Credit

Retained Earnings

Income Taxes Receivable

Accumulated Depreciation$-$Equipment

Retained Earnings

Income Taxes Receivable

Accumulated Depreciation$-$Equipment