Lindy Company's auditor discovered several errors. No errors were corrected during 2020. The errors are described as follows: A 3-year insurance policy purchased on Oct 31, 2020, in the amount of $18,000.00 was debited to Prepaid Insurance. No adjustment was made on December 31, 2020, or on December 31, 2021. Prepare appropriate journal entries to correct the error, and any adjusting entries required (assume the 2021 books have not been closed). Ignore income taxes. (If no entry is required for a transaction/event, select "No journal entry required.") a)identify the J/E made error b) Identify the J/E that should have been made c) Provide the correcting J/E to fix the error d)year end adjusting entry
Accounting
Lindy Company's auditor discovered several errors. No errors were corrected during 2020. The errors are described as follows:
A 3-year insurance policy purchased on Oct 31, 2020, in the amount of $18,000.00 was debited to Prepaid Insurance. No adjustment was made on December 31, 2020, or on December 31, 2021.
Prepare appropriate journal entries to correct the error, and any
a)identify the J/E made error
b) Identify the J/E that should have been made
c) Provide the correcting J/E to fix the error
d)year end adjusting entry
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