On January 1, 2016 Grier Company Purchased and Installed a Telephone

question 61

Essay

On January 1, 2016 Grier Company purchased and installed a telephone system at a cost of $20,000. The equipment was expected to last five years with a salvage value of $3,000. On January 1, 2017 more telephone equipment was purchased to tie-in with the current system for $10,000. The new equipment is expected to have a useful life of four years. Through an error, the new equipment was debited to Telephone Expense. Grier Company uses the straight-line method of depreciation.
Instructions
Prepare a schedule showing the effects of the error on Telephone Expense, Depreciation Expense, and Net Income for each year and in total beginning in 2017 through the useful life of the new equipment.

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Definitions:

Coding Systems

Methodologies or sets of rules used to encode or classify information for purposes such as data processing or communication.

Trust

Confidence or reliance in the integrity, strength, ability, or character of a person or concept.

Evaluations

are systematic assessments of the value, performance, or significance of an object, project, or person based on established criteria.

Leaders' Skills

The set of abilities and competencies that leaders possess to guide, motivate, and manage teams effectively.