Prepare the Journal Entries for the Following Transactions

question 9

Essay

Prepare the journal entries for the following transactions:
1. On April 12, 2012 the company discovered that Depreciation Expense on equipment for the year ended December 31, 2011 had been recorded twice, for a total amount of $120,000 instead of $60,000 (the correct amount).
2. On August 31, 2012, the company received a check from the IRS for $18,000. The company discovered that the 2011 income tax expense was recorded as $42,000, but the correct amount was $24,000.
3. On November 18, 2012, the company discovered that the July 2012 utilities bill for $3,800 had been charged to the Wages Expense account in error.

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Definitions:

Studied Problem

An issue or challenge that has been the subject of detailed examination and research to understand its nature and find solutions.

Pseudoscience

A body of explanations or hypotheses that masquerades as science.

Unverifiable Claims

Statements or assertions that cannot be proven or disproven through investigation or evidence.

Emotional Appeals

Persuasive techniques that attempt to influence an audience by eliciting strong feelings rather than by using facts or logic.