Prepare the journal entry for correcting the misstatement

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Question - In June 2002, it was discovered that Worldcom, a large US telecommunication company, committed one of the largest accounting frauds. Worldcom unduly capitalized $3.8 billion access fees during the year 2001 and the first quarter of 2002. In June 2002, it was discovered that Worldcom, a large US telecommunication company, committed one of the largest accounting frauds. Worldcom unduly capitalized $3.8 billion access fees during the year 2001 and the first quarter of 2002.

Required - Without considering tax effects, prepare the journal entry for correcting the cumulative misstatement as of the reporting date of Quarter 1, 2002.

Reference no: EM132664828

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