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VashaNatasha [74]
3 years ago
7

Sheridan Co. purchased machinery that cost $2650000 on January 4, 2019. The entire cost was recorded as an expense. The machiner

y has a 9-year life and a $165000 residual value. The error was discovered on December 20, 2021. Ignore income tax considerations. Sheridan's income statement for the year ended December 31, 2021, should show the cumulative effect of this error in the amount of:________
Business
1 answer:
Novay_Z [31]3 years ago
7 0

Answer:

See below

Explanation:

Recording the entire cost as expense would have understated retained earnings by $2,650,000

Annual depreciation on machine = ( Purchase cost - Residual value ) / Useful life

= ($2,650,000 - $165,000) / 9

= $2,485,000 / 9

= $276,111.11

Depreciation would have been recorded for $552,222 for 2 years had the machinery been corrected recorded I.e $276,111 × 2 = $552,222

Therefore , the cumulative effect of this error on the income statement of Sheridan for the year ended, 31 December 2021 would have shown

= $2,650,000 - $552,222

= $2,097,779

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Answer:

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Explanation:

Current assets: The current assets are those assets who are converted into cash within one year. Like - accounts receivable, cash, inventory, prepaid insurance, etc.

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4 0
3 years ago
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Explanation:

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Leadership is about achieving goals through the guidance of human assistants. A leader is someone who is successful in getting his human colleagues to achieve a specific goal. A good leader is someone who can do this every day, year after year, under different circumstances.

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Working as an elevator operator used to be a common job in the workforce four decades ago, but today few jobs remain. The unempl
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