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Depreciation of equipment during 2021 was understated by P 12,000. What would be the adjusting entry if the error was discovered at December 31, 2022? O Debit - Retained Earnings, P 12,000; Credit - Accumulated Depreciation, P 12,000. O Debit - Accumulated Depreciation, P 12,000; Credit - Retained Earnings, P 12,000. O Debit - Equipment, P 12,000; Credit Retained Earnings, P 12,000. O No adjusting entry is necessary

Depreciation of equipment during 2021 was understated by P 12,000. What would be the adjusting entry if the error was discovered at December 31, 2022? O Debit - Retained Earnings, P 12,000; Credit - Accumulated Depreciation, P 12,000. O Debit - Accumulated Depreciation, P 12,000; Credit - Retained Earnings, P 12,000. O Debit - Equipment, P 12,000; Credit Retained Earnings, P 12,000. O No adjusting entry is necessary

FINANCIAL ACCOUNTING
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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Depreciation of equipment during 2021 was understated by P 12,000. What would be the adjusting entry if the error was discovered at December 31, 2022? O Debit - Retained Earnings, P 12,000; Credit Accumulated Depreciation, P 12,000. O Debit - Accumulated Depreciation, P 12,000; Credit Retained Earnings, P 12,000. O Debit - Equipment, P 12,000; Credit - Retained Earnings, P 12,00. O No adjusting entry is necessary
Transcribed Image Text:Depreciation of equipment during 2021 was understated by P 12,000. What would be the adjusting entry if the error was discovered at December 31, 2022? O Debit - Retained Earnings, P 12,000; Credit Accumulated Depreciation, P 12,000. O Debit - Accumulated Depreciation, P 12,000; Credit Retained Earnings, P 12,000. O Debit - Equipment, P 12,000; Credit - Retained Earnings, P 12,00. O No adjusting entry is necessary
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