Journal entries to correct the errors

Assignment Help Accounting Basics

Reference no: EM13154157

In 2009, the internal auditors of KJI Manufacturing discovered the following material errors made in prior years:

1. Equipment was purchased on June 30, 2007, for $100,000. The purchase was incorrectly recorded as a debit to repair and maintenance expense. The equipment has a useful life of five years and no residual value.

2. On March 31, 2008, $50,000 was paid to a contractor to landscape the area around a manufacturing plant including the installation of a sprinkler system. The expenditure was debited to the Land account. The landscaping is expected to have a 20-year useful life and no residual value.

KJI uses the straight-line method of depreciation for all depreciable assets.

Required:

1. Prepare the journal entries to correct the errors (ignore income taxes).

2. Prepare the journal entries to record 2009 depreciation for any assets record in requirement

Reference no: EM13154157

Questions Cloud

What can you do to meet the customers required reliability : Your system (Aircraft, etc.) has a reliability of .80 after operating for 1000 hours. What can you do to meet the customers' required reliability? Explain in detail.

Significance level what conclude-theory is a natural cycle : Using the 0.05 significance level what should we conclude about the theory that 24hrs. is a natural cycle? a) use hypothesis steps b) sketch distribution c) explain to someone who never took this course.

How much interest expense will cramer companyreport : Cramer Company sold 5-year, 8% bonds on October 1, 2011. The face amount of the bonds was$100,000, while the issue price was $102,000. Interest is payable on April 1 of each year. The fiscalyear of Cramer Company ends on December 31. How much interes..

How many grams of h2so4 are produced : If 2.09 g SO2 react with excess oxygen and water, how many grams of H2SO4 are produced?

Journal entries to correct the errors : Prepare the journal entries to correct the errors (ignore income taxes). Prepare the journal entries to record 2009 depreciation for any assets record in requirement

Problem on annual cost per salesperson : You are thinking of hiring 10 more salespeople. The annual cost per salesperson (including salary and benefits) is $120,000. In addition, each salesperson receives as a bonus 10% of the sales he or she generates. How much should your market share ..

Discuss the necessary conditions make price discrimination : Discuss the necessary conditions to make price discrimination work and the best practices to use price discrimination to maximize profits while avoiding price wars.

Budgeted direct labor cost for the month : Margo's ending finished goods inventory is budgeted to be 20% of the following month's sales. How much was Margo's budgeted direct labor cost for the month of August, assuming that the hourly wage rate is $15.00

Define h2o molecules via ion-dipole intermolecular forces : Consider the following reactions and select the false statement below. CO2(g) + OH?(aq) ? HCO3?(aq) Cr3+(aq) + 6H2O(l) ? Cr(H2O)63+(aq) A. in Cr(H2O)63+ the Cr3+ is attracted to the H2O molecules via ion-dipole intermolecular forces

User Account

All Pages