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 $22,000, salvage value of $1,320, 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 $27,500 and no salvage value was sold for $2,200 cash. The company's entry for the sale was a debit to Cash for $2,200 and a credit to Equipment for $2,200. c. Equipment purchased on June 30 of the prior year, with a cost of $71,500, a salvage value of $4,950, 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 a. Jan. 1 Equipment Account Name Dr. Cr. v 22,000 0 Accumulated Depreciation v 0 2.585 v Retained Earnings-Prior Period Adjustment v 0 19.415 To correct error. b. Jan. 1 Equipment Depreciation Expense Retained Earnings-Prior Period Adjustment v 27,500 0x 0 0x 0 0x To correct error c.Jan. 1 Equipment Accumulated Depreciation To correct error. 8,319 0x 0 8.319 x