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ki77a [65]
3 years ago
9

In 2021, it was discovered that Hines 55 had debited expense for the full cost of an asset purchased on January 1, 2018. The cos

t was $24 million with no expected residual value. Its useful life was 5 years and straight-line depreciation is used by the company. The correcting entry assuming the error was discovered in 2021 before the adjusting and closing entries includes:a.A credit to accumulated depreciation of $14.4 millionb.A debit to accumulated depreciation of $9.6 millionc.A debit to retained earnings of $9.6 milliond.A credit to an asset of $24 million
Business
1 answer:
Brut [27]3 years ago
5 0

Answer:

A) A credit to accumulated depreciation of $14.4 Million

Explanation:

The complete journal entry should be:

  • Dr Asset XXX account 24,000,000
  • Cr Accumulated Depreciation account 14,400,000
  • Cr Retained Earnings account 9,600,000

First of all the asset must be recorded at full value.

Accumulated depreciation would be credited for 3 years = ($24 / 5) x 3 = $4.8 x = $14.4

Since the depreciation expense lowered the net profits during 2018, the retained earnings must be adjusted for the remaining value = $24 - $14.4 = $9.8

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Answer:

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Explanation:

Accelerated method of depreciation is used by businesses for accounting and income tax purposes. The depreciation is calculated in such a way that the depreciation expense is higher in early years and lower in later years. Pepe is also using this method to account for his business assets. The depreciation expense for computer equipment and manufacturing equipment's totals $6,973.

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3 years ago
Frank has just completed a study in which he gave a survey to each of 7,000 employees and their supervisors in a large bank. His
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Answer:

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10 reasons why kids should have phones Use your own words Explain your reasons
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Explanation:

For enjoying and enjoying the time of your life

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3 years ago
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For each situation, select one option from below that you think will help increase profit.
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Employees at printing company is the best rates on advertising, A shop that sells fine glass is Get the best rates on supplier purchases.

<h3 /><h3>What are the other situation that fix the below statements?</h3>

There are 12 places to buy yarn needed for knitting factories is Use resources wisely,  two stores sell same video game at the same price is Eliminate some free services. At a sign making company the extra metal is discarted is Increase worker efficiency.

Thus, the numbering has done in above statements correctly

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6 0
2 years ago
You are considering investing $1,000 in a T-bill that pays 0.05 and a risky portfolio, P, constructed with 2 risky securities, X
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Answer:

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Explanation:

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