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ycow [4]
3 years ago
15

In 2018, it was discovered that Jenson Technologies had debited an expense account for the $400,000 cost a computer purchased on

January 1, 2016. The computer's useful life was estimated to be four years with no residual value. Straight-line depreciation is used by Jenson. Ignoring income taxes, what journal entry will Jenson use to correct the error?
Business
1 answer:
satela [25.4K]3 years ago
6 0

Answer:

Explanation:

journal entry will Jenson use to correct the error

Date       Account Titles And Explanation          Debit           Credit

                                     Computer                                $400,000  

              Accumulated depreciation ($100,000 × 2 years)     $200,000

       Retained earnings ($400,000 - $200,000)                       $200,000

Annual depreciation = (Cost - Salvage Value) / 4

                               = ($400,000 - 0) / 4

                               = $100,000

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