In 2025, Bridgeport Corporation discovered that equipment purchased on January 1, 2023, for $51,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no salvage value. The effective tax rate is 30%. Prepare Bridgeport's 2025 journal entry to correct the error. Bridgeport uses straight-line depreciation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Equipment Accumulated Depreciation-Equipment Deferred Tax Liability Retained Earnings Debit 51,000 30,600 9,180 Credit 90,780
In 2025, Bridgeport Corporation discovered that equipment purchased on January 1, 2023, for $51,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no salvage value. The effective tax rate is 30%. Prepare Bridgeport's 2025 journal entry to correct the error. Bridgeport uses straight-line depreciation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Equipment Accumulated Depreciation-Equipment Deferred Tax Liability Retained Earnings Debit 51,000 30,600 9,180 Credit 90,780
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Manji
Transcribed Image Text:In 2025, Bridgeport Corporation discovered that equipment purchased on January 1, 2023, for $51,000 was expensed at that time.
The equipment should have been depreciated over 5 years, with no salvage value. The effective tax rate is 30%.
Prepare Bridgeport's 2025 journal entry to correct the error. Bridgeport uses straight-line depreciation. (Credit account titles are
automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the
account titles and enter 0 for the amounts. List all debit entries before credit entries.)
Account Titles and Explanation
Equipment
Accumulated Depreciation-Equipment
Deferred Tax Liability
Retained Earnings
Debit
51,000
30,600
9,180
Credit
90,780
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