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Question - On 1/1/22 the business incurred a maintenance expense of $80,000. However, instead of DR an expense account is mistakenly DR the Equipment account The company uses the straight-line method to depreciate all of its assets over a useful life of 10 years with no residual value. Prepare the entry to correct the error by assuming it was discovered in 2022 after the depreciation adjustment was entered but before the temporary accounts were closed. Prepare the post to fix the bug assuming it was discovered in 2022 after temporary accounts were closed but before posting the 2022 10k.
Financial Statement Analysis and Preparation
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