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Anastaziya [24]
3 years ago
13

The Jessica Co. has the following errors on its books as of December 31, 2018. The books for 2018 have not yet been closed.

Business
1 answer:
NISA [10]3 years ago
6 0

Answer and Explanation:

The journal entry is given below;

a. Machine or equipment  $6,500

        To Accumulated depreciation ($6,500 × 3 ÷ 5) $3,900

        To Retained earnings $2,600

(being the correction of the error is recorded)

b. Prepaid insurance Dr ($800 ÷ 4 × 2 ) $400

        To Retained earnings $400

(being the correction of the error is recorded)

These two entries should be recorded to correct the given errors

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