Apologies, I dont need the ratios calculated! i just need the correcting journal entry for...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Apologies, I dont need the ratios calculated! i just need the correcting journal entry for this problem Information: Despite all of your hard work to correct Terry's financial statements, the internal auditor recently found a mistake that need to be corrected before the financial statements are closed for the period. In Year 2, research and development costs of $24,000 were expensed instead of capitalized into Patent (which is allowed when you purchase a patent from another company, as Terry did). The cost should have been amortized using straight line depreciation over 5 years for both GAAP and tax purposes, starting in Year 2 Terry's management would like to know the effect of the sale on the following ratios: Debt to Equity . Current Ratio ROA Assignment: Calculations 1. Calculate each of the three (3) ratios before you make any adjustments. 2. Make the appropriate journal entries, if any, to correct the errors mentioned above (including any necessary changes to income tax expense)
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.