In 2020, Lion CPA's became the auditor of Tinman Company and discovered 2 errors. Scarecrow Company CPA's were Tinman's auditor in 2019 and did not find any errors. 1. On January 1st 2019 Tinman Company purchased a flying broom for $20,000. The flying broom has an estimated life of 5 years with no salvage value and no depreciation was taken in either 2019 or 2020. 2. Inventory costing Tinman $4000 was sold to OZ Company during December 2019, but the sale wasn't recorded until OZ paid $9000 for the inventory on January 5th 2020. Tinman uses periodic inventory method and the 2019 count of inventory did NOT include the merchandise sold to OZ since it wasn't in Tinman's warehouse. REQUIRED prepare the appropriate journal entries for 2020. Assume the 2020 books have not been closed.

In 2020, Lion CPA's became the auditor of Tinman Company and discovered 2 errors. Scarecrow Company CPA's were Tinman's auditor in 2019 and did not find any errors. 1. On January 1st 2019 Tinman Company purchased a flying broom for $20,000. The flying broom has an estimated life of 5 years with no salvage value and no depreciation was taken in either 2019 or 2020. 2. Inventory costing Tinman $4000 was sold to OZ Company during December 2019, but the sale wasn't recorded until OZ paid $9000 for the inventory on January 5th 2020. Tinman uses periodic inventory method and the 2019 count of inventory did NOT include the merchandise sold to OZ since it wasn't in Tinman's warehouse. REQUIRED prepare the appropriate journal entries for 2020. Assume the 2020 books have not been closed.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 15E: The following are independent errors: a. In January 2019, repair costs of 9,000 were debited to the...

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The following are independent errors: a. In January 2019, repair costs of 9,000 were debited to the Machinery account. At the beginning of 2019, the book value of the machinery was 100,000. No residual value is expected, the remaining estimated life is 10 years, and straight-line depreciation is used. b. All purchases of materials for construction contracts still in progress have been immediately expensed. It is discovered that the use of these materials was 10,000 during 2018 and 12,000 during 2019. c. Depreciation on manufacturing equipment has been excluded from manufacturing costs and treated as a period expense. During 2019, 40,000 of depreciation was accounted for in that manner. Production was 15,000 units during 2019, of which 3,000 remained in inventory at the end of the year. Assume there was no inventory at the beginning of 2019. Required: Prepare journal entries for the preceding errors discovered during 2020. Ignore income taxes.
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In 2022, internal auditors discovered that Fay, Inc., had debited an expense account for the $2,640,000 cost of a machine purchased on January 1, 2019. The machine's useful life was expected to be 16 years with no residual value. Straight-line depreciation is used by Fay. The journal entry to correct the error will include a credit to accumulated depreciation of. A) $495,000. B) $2,145,000. $330,000. $165,000.
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In 2024, internal auditors discovered that Fay, Incorporated, had debited an expense account for the $700,000 cost of a machine purchased on January 1, 2021. The machine's useful life was expected to be five years with no residual value. Straight-line depreciation is used by Fay. The journal entry to correct the error will include a credit to accumulated depreciation of?