The following are independent errors:a.In January 2019, repair costs of $11,280 were debited to the Machinery account. At the beginning of 2019, the book value of the machinery was $103,800. No residual value is expected, the remaining estimated life is 12 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 $9,750 during 2018 and $12,380 during 2019.c.Depreciation on manufacturing equipment has been excluded from manufacturing costs and treated as a period expense. During 2019, $33,100 of depreciation was accounted for in that manner. Production was 13,400 units during 2019, of which 2,546 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.

The journal entries for the preceding errors discovered during 2020 are recorded as follows:

Answered: The following are independent errors:…

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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The following are independent errors:

a.	In January 2019, repair costs of $11,280 were debited to the Machinery account. At the beginning of 2019, the book value of the machinery was $103,800. No residual value is expected, the remaining estimated life is 12 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 $9,750 during 2018 and $12,380 during 2019.
c.	Depreciation on manufacturing equipment has been excluded from manufacturing costs and treated as a period expense. During 2019, $33,100 of depreciation was accounted for in that manner. Production was 13,400 units during 2019, of which 2,546 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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