Recording Error Corrections Related to Equipment On April 1 of the current year, the following prior year errors were discovered after the prior year financial statements were issued. a. Equipment purchased on January 1 of the prior year with a cost of $40,000, salvage value of $2,400, and useful life of 8 years was incorrectly expensed as maintenance cost. The company uses the straight-line method to depreciate all equipment. b. In the prior year, fully depreciated equipment with an original cost of $50,000 and no salvage value was sold for $4,000 cash. The company's entry for the sale was a debit to Cash for $4,000 and a credit to Equipment for $4,000. c. Equipment purchased on June 30 of the prior year, with a cost of $130,000, a salvage value of $9,000, and a useful life of 8 years was incorrectly entered into the depreciation system as having a useful life of 18 years. Required Prepare entries to correct each of the errors a, b, and c, discovered in the current year. Ignore income taxes. Note: Round answers to the nearest whole dollar. Date Account Name a. Jan. 1 Equipment Accumulated Depreciation Retained Earnings-Prior Period Adjustment To correct error. b. Jan. 1 Accumulated Depreciation Equipment Retained Earnings-Prior Period Adjustment Dr. Cr. 40,000 0 0 4,700 0 35,300 50,000 0 0 46,000 0 4,000 To correct error. c. Jan. 1 Retained Earnings-Prior Period Adjustment 0x Accumulated Depreciation 0 To correct error.