Non-counterbalancing error correction
Turkey Corp. bought a machine on January 3, 2018 for $ 275,000. It had a $ 15,000 estimated residual value and a ten-year life. The corporation uses straight-line depreciation. An expense account was debited in error on the purchase date, but this was not discovered until late 2020.
Instructions
Prepare the correcting entry or entries related to the machine for 2020. Ignore income tax effects.

Question

Quizplus · Accepted Answer

The Answer of Non-counterbalancing error correction
Turkey Corp. bought a machine on January 3, 2018 for $ 275,000. It had a $ 15,000 estimated residual value and a ten-year life. The corporation uses straight-line depreciation. An expense account was debited in error on the purchase date, but this was not discovered until late 2020.
Instructions
Prepare the correcting entry or entries related to the machine for 2020. Ignore income tax effects.

Non-Counterbalancing Error Correction Turkey Corp. Bought a Machine on January 3, 2018 for 3