Langley Corporation Replaced an HVAC System for One of Its

question 32

Multiple Choice

Langley Corporation replaced an HVAC system for one of its warehouses in July,2015,at a cost of $350,000.The accountant recording the purchase charged it to repairs and maintenance expense.The error was discovered early in 2017 while reconciling depreciation expense for 2016.The system should last about 7 years with no salvage value.What entry should be made before the 2016 books are closed if the company uses straight-line depreciation?

• A) Accumulated Depreciation 50,000 Retained Earnings-Prior Period Adj. 300,000
• B) HVAC System 400,000
• C) Accumulated Depreciation 75,000 Retained Earnings-Prior Period Adj. 325,000
• D) Retained Earnings-Prior Period Adj. 400,000

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Definitions:

Employee Morale

The overall satisfaction, outlook, and feelings of well-being that employees have within their work environment.

Workforce Size

Refers to the total number of employees (full-time, part-time, and contract) that a company employs at any given time to meet its business needs.

Level Scheduling

A technique in production planning aimed at maintaining a steady rate of output, workforce levels, and material usage over time.

Seasonal Demand Fluctuations

Variations in product or service demand corresponding to season or specific time periods.