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In 2015, the Hermes Corporation Failed to Record $8,000 in Depreciation

Question 130

Essay

In 2015, the Hermes Corporation failed to record $8,000 in depreciation expense. The error was discovered in May of 2016.
Required:
Make the appropriate journal entry in the books of Hermes Corporation in the year 2016. Explain the impact of the error correction on the Hermes' 2016 net income.

Correct Answer:

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The correction of the 2015 error will ...

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