Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1, 2017, a device was purchased for $ 3

On January 1, 2017, a device was purchased for $ 3305.2 and was expensed in...

90.2K

Verified Solution

Question

Accounting

On January 1, 2017, a device was purchased for $ 3305.2 and was expensed in error. Typically, the company uses a residual value of zero and an estimated useful life of 10 years for assets of this type. The company uses the straight-line method to depreciate all of its assets. The bug was discovered and fixed in early 2020 (before adjustments). Ignoring any tax effect, the entry to correct the error will include a

Select one:

a. CR to Retained Earnings for $$ 4297.

b. CR to Accumulated Depreciation for $ 992.

c. DR depreciation expense of $ 992.

d. DR to Retained Earnings for $ 2314.

Answer & Explanation Solved by verified expert
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!
Become a Member

Other questions asked by students