Langley Corporation replaced an HVAC system in one of its warehouses in July, 2021, at a cost of $430,000. The accountant recording the purchase charged it to repairs and maintenance expense. The error was discovered late in 2022 while reconciling depreciation expense for 2022. The system should last about 7 years with no salvage value. What entry should be made before the 2022 books are closed if the company uses straight-line depreciation? (Round intermediate calculations to the nearest cent and your final answer to the nearest dollar.) Group of answer choices Warehouse 430,000 ​ Depreciation Expense—Warehouse 61,429   Retained Earnings 491,429 Warehouse 430,000 ​ Depreciation Expense (2022)—Warehouse 61,429     Accumulated Depreciation—Warehouse92,144 Retained Earnings—Prior Period Adjustment  399,285 Warehouse 430,000 ​   Accumulated Depreciation -Warehouse 61,429 Retained Earnings—Prior Period Adjustment 368,571 Retained Earnings—Prior Period Adjustment 430,000 ​ Depreciation Expense—Warehouse 61,429   Warehouse 491,429

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 66P: At the end of 2020, Magenta Manufacturing Company discovered that construction cost had been...
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Langley Corporation replaced an HVAC system in one of its warehouses in July, 2021, at a cost of $430,000. The accountant recording the purchase charged it to repairs and maintenance expense. The error was discovered late in 2022 while reconciling depreciation expense for 2022. The system should last about 7 years with no salvage value. What entry should be made before the 2022 books are closed if the company uses straight-line depreciation? (Round intermediate calculations to the nearest cent and your final answer to the nearest dollar.)
Group of answer choices
Warehouse 430,000
Depreciation Expense—Warehouse 61,429  
Retained Earnings 491,429
Warehouse 430,000
Depreciation Expense (2022)—Warehouse 61,429  
 
Accumulated Depreciation—Warehouse92,144 Retained Earnings—Prior Period Adjustment  399,285
Warehouse 430,000
 
Accumulated Depreciation -Warehouse 61,429 Retained Earnings—Prior Period Adjustment 368,571
Retained Earnings—Prior Period Adjustment 430,000
Depreciation Expense—Warehouse 61,429  
Warehouse 491,429
 
 
 
 
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