During 2014, Airdrie Company Discovered That in 2013 They Had $\quad 12,500$

question 10

Multiple Choice

During 2014, Airdrie Company discovered that in 2013 they had forgotten to record depreciation expense of $12,500 on office equipment.What journal entry would they make in 2014? (You may ignore any income tax effects.)

A. Dr. Office equipment $\quad 12,500$
Cr. Accumulated depreciation $\quad 12,500$

B. Dr. Retained earnings 12,500
Cr. Accumulated depreciation $\quad 12,500$

C. Dr. Depreciation expense $\quad 12,500$
Cr. Accumulated depreciation $\quad 12,500$

D. Dr. Accumulated depreciation $\quad 12,500$
Cr. Retained earnings $\quad 12,500$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Promissory Estoppel

A legal principle that prevents a party from going back on a promise, even if it was made without formal consideration, when someone else has reasonably relied on that promise.

Statute of Frauds

A legal principle requiring certain types of contracts to be in writing and signed by the parties involved to be legally enforceable.

Statutory Novation

The replacement of an obligation to perform under a contract with a new obligation or party, as recognized by statute.

Effective Assignment

A transfer or allocation that fully accomplishes its intended purpose, often relating to tasks, responsibilities, or legal rights.