At the end of 2022, Neck Company discovered that patent amortization expense of $222,000 had not been recorded in 2021 or 2022. If Neck has not closed the books for 2022, the journal entry to correct the error will Answer a. a debit to Retained Earnings and a credit to Patent for $444,000. b. a debit to Amortization Expense and a credit to Patent for $444,000. c. a debit to Amortization Expense and a credit to Patent for $222,000. d. include debits to Retained Earnings and Amortization Expense of $222,000 and a credit to Patent for $444,000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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At the end of 2022, Neck Company discovered that patent amortization expense of $222,000 had not been recorded in 2021 or 2022. If Neck has not closed the books for 2022, the journal entry to correct the error will

Answer

a.

a debit to Retained Earnings and a credit to Patent for $444,000.

b.

a debit to Amortization Expense and a credit to Patent for $444,000.

c.

a debit to Amortization Expense and a credit to Patent for $222,000.

d.

include debits to Retained Earnings and Amortization Expense of $222,000 and a credit to Patent for $444,000.

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