40 Depreciation of equipment during 2021 was overstated by P 16,000. What would bethe adjusting entry if the error was discovered at December 31, 2022?O Debit - Accumulated Depreciation, P 16,000; Credit Retained Earnings, P 16,000.O Debit - Retained Earnings, P 16,000; Credit Accumulated Depreciation, P 16,000.O No adjusting entry is necessaryO Debit - Accumulated Depreciation, P 16,000; Credit Equipment, P 16,000.

An adjusting journal entry is a journal entry made in a company's general ledger at the end of an…

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Depreciation of equipment during 2021 was overstated by P 16,000. What would be the adjusting entry if the error was discovered at December 31, 2022?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.

Question

100%

Depreciation of equipment during 2021 was overstated by P 16,000. What would be
the adjusting entry if the error was discovered at December 31, 2022?
O Debit - Accumulated Depreciation, P 16,000; Credit Retained Earnings, P 16,000.
O Debit - Retained Earnings, P 16,000; Credit Accumulated Depreciation, P 16,000.
O No adjusting entry is necessary
O Debit - Accumulated Depreciation, P 16,000; Credit Equipment, P 16,000.

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