Saul's Manufacturing Company owns various machinery and equipment, among other capital assets, which are used in its manufacturing process. In 2014, one of the machines suddenly stopped working and a technician was called in to assess the problem. The technician was able to apply oil to a certain part of the machine and return it to normal working order after 4 hours of labour. Saul's Manufacturing Company subsequently received a bill from the technician for $1,030 which the accountant recorded as a debit to machinery and credit to accounts payable with a plan to pay off the balance in 2015. What is the effect of the journal entry on the financial statements of Saul's Manufacturing Company?

The transaction was accounted for correctly

The transaction was recorded incorrectly and is considered a permanent error

The transaction may be recorded correctly but we need additional information to know for certain

The transaction was recorded erroneously because the bill should not have been recorded until 2015

The depreciation expense for 2014 and following years was overstated