Rectification of errors Once an accounting error is found, it should be properly rectified. The correction of accounting errors in a systematic manner is known as the rectification of errors. To Prepare : A journal entry necessary as a direct result of the error described .

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Answer 1

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Definition Definition Items on the balance sheet that are created when the tax paid is more than tax considered on the income statement. Deferred tax assets result from overpayment and advance payment of taxes. They are recorded on the assets side of the balance sheet. A deferred tax asset results in the reduction of a future tax payment and is beneficial to the company. It arises when the profit as per tax laws is more than the profit as per books of accounts.

Chapter 20, Problem 20.17P

(1)

To determine

Rectification of errors

Once an accounting error is found, it should be properly rectified. The correction of accounting errors in a systematic manner is known as the rectification of errors.

To Prepare: A journal entry necessary as a direct result of the error described.

(2)

To determine

To describe: The other steps GY Industries would take to appropriately report the situation.

(3)

To determine

To prepare: A journal entry for 2018, depreciation adjustment.

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A Each of the following situations is independent: B CD F G H K L M N R. U V X Y 1 2 1. Change in estimated useful life and residualvalue. Company XYZ purchases equipment on 1 January 20x6 for 3 4 $ 42,000 The company uses the straight line method of depreciation, taking a full year's depreciation in the year 5 of acquisition. The equipment has an estimated residual value of $8,000.00 and an estimated useful life of 4 years. In 20x7, the company decides that the machine really has an origional total life of 5 years and 7 a residual value of $ 7,000.00 8 9 How much is the depreciation expense for 20x7? 10 11 Solution: 12 13 14 15 16 17 18 2. Retrospective change in accounting policy. A private company changes its method of accounting for long term 19 construction contracts from the percentage of completion method (PC) to the compelted contract method (CC) in 20x7. 20 The years affected by the change, and incomes under both methods, appear below (ignore income tax) 21 22 Year 23 20x5 24…

LO 10.5 SHOW ME HOW McClain Company incurred the following expenditures during 2019: The air conditioning system in the old manufacturing facility was replaced for $83,000. The old air conditioning system had a cost of $74,000 and a book value of $2,000. The old air conditioning system had no scrap value. Apr. June 29 Annual maintenance of $38,000 was performed. Sept. 12 The roof of the old manufacturing facility is replaced at a cost of $65,000. This expenditure substantially extended the life of the facility. Dec. 28 A new wing was added to the manufacturing facility at a cost of $275,000. This expenditure substantially increased the productive capacity of the plant. Required: 1. Prepare journal entries to record McClain's expenditures for 2019.

vi.2

Answer 2

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Definition Definition Items on the balance sheet that are created when the tax paid is more than tax considered on the income statement. Deferred tax assets result from overpayment and advance payment of taxes. They are recorded on the assets side of the balance sheet. A deferred tax asset results in the reduction of a future tax payment and is beneficial to the company. It arises when the profit as per tax laws is more than the profit as per books of accounts.

Chapter 20, Problem 20.17P

(1)

To determine

Rectification of errors

Once an accounting error is found, it should be properly rectified. The correction of accounting errors in a systematic manner is known as the rectification of errors.

To Prepare: A journal entry necessary as a direct result of the error described.

(2)

To determine

To describe: The other steps GY Industries would take to appropriately report the situation.

(3)

To determine

To prepare: A journal entry for 2018, depreciation adjustment.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Definition Definition Items on the balance sheet that are created when the tax paid is more than tax considered on the income statement. Deferred tax assets result from overpayment and advance payment of taxes. They are recorded on the assets side of the balance sheet. A deferred tax asset results in the reduction of a future tax payment and is beneficial to the company. It arises when the profit as per tax laws is more than the profit as per books of accounts.

Chapter 20, Problem 20.17P

(1)

To determine

Rectification of errors

Once an accounting error is found, it should be properly rectified. The correction of accounting errors in a systematic manner is known as the rectification of errors.

To Prepare: A journal entry necessary as a direct result of the error described.

(2)

To determine

To describe: The other steps GY Industries would take to appropriately report the situation.

(3)

To determine

To prepare: A journal entry for 2018, depreciation adjustment.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Items on the balance sheet that are created when the tax paid is more than tax considered on the income statement. Deferred tax assets result from overpayment and advance payment of taxes. They are recorded on the assets side of the balance sheet. A deferred tax asset results in the reduction of a future tax payment and is beneficial to the company. It arises when the profit as per tax laws is more than the profit as per books of accounts.

Chapter 20, Problem 20.17P

(1)

To determine

Rectification of errors

Once an accounting error is found, it should be properly rectified. The correction of accounting errors in a systematic manner is known as the rectification of errors.

To Prepare: A journal entry necessary as a direct result of the error described.

(2)

To determine

To describe: The other steps GY Industries would take to appropriately report the situation.

(3)

To determine

To prepare: A journal entry for 2018, depreciation adjustment.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 20, Problem 20.17P

(1)

To determine

Rectification of errors

Once an accounting error is found, it should be properly rectified. The correction of accounting errors in a systematic manner is known as the rectification of errors.

To Prepare: A journal entry necessary as a direct result of the error described.

(2)

To determine

To describe: The other steps GY Industries would take to appropriately report the situation.

(3)

To determine

To prepare: A journal entry for 2018, depreciation adjustment.

Answer 6

Chapter 20, Problem 20.17P

(1)

To determine

Rectification of errors

Once an accounting error is found, it should be properly rectified. The correction of accounting errors in a systematic manner is known as the rectification of errors.

To Prepare: A journal entry necessary as a direct result of the error described.

Answer 7

Chapter 20, Problem 20.17P

(1)

To determine

Rectification of errors

Once an accounting error is found, it should be properly rectified. The correction of accounting errors in a systematic manner is known as the rectification of errors.

To Prepare: A journal entry necessary as a direct result of the error described.

Answer 8

(2)

To determine

To describe: The other steps GY Industries would take to appropriately report the situation.

Answer 9

(2)

To determine

To describe: The other steps GY Industries would take to appropriately report the situation.

Answer 10

(3)

To determine

To prepare: A journal entry for 2018, depreciation adjustment.

Answer 11

(3)

To determine

To prepare: A journal entry for 2018, depreciation adjustment.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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Rectification of errors Once an accounting error is found, it should be properly rectified. The correction of accounting errors in a systematic manner is known as the rectification of errors. To Prepare : A journal entry necessary as a direct result of the error described .

Solution Summary: The author explains the rectification of accounting errors in a systematic manner. GY Industries acquired industrial robots at the beginning of 2015.

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Rectification of errors

Once an accounting error is found, it should be properly rectified. The correction of accounting errors in a systematic manner is known as the rectification of errors.

To Prepare: A journal entry necessary as a direct result of the error described.

To describe: The other steps GY Industries would take to appropriately report the situation.

To prepare: A journal entry for 2018, depreciation adjustment.

Want to see the full answer?

Chapter 20 Solutions

Rectification of errors Once an accounting error is found, it should be properly rectified. The correction of accounting errors in a systematic manner is known as the rectification of errors. To Prepare : A journal entry necessary as a direct result of the error described .

Solution Summary: The author explains the rectification of accounting errors in a systematic manner. GY Industries acquired industrial robots at the beginning of 2015.

Videos

Rectification of errors Once an accounting error is found, it should be properly rectified. The correction of accounting errors in a systematic manner is known as the rectification of errors. To Prepare: A journal entry necessary as a direct result of the error described.

To describe: The other steps GY Industries would take to appropriately report the situation.

To prepare: A journal entry for 2018, depreciation adjustment.

Want to see the full answer?

Chapter 20 Solutions

Rectification of errors

Once an accounting error is found, it should be properly rectified. The correction of accounting errors in a systematic manner is known as the rectification of errors.

To Prepare: A journal entry necessary as a direct result of the error described.