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:

Beneficial

Producing good or helpful results or effects; advantageous.

Expression

The process of conveying thoughts, feelings, or emotions through gestures, speech, writing, or artistic creations.

Sequence

A particular order in which related events, movements, or things follow each other.

Stress Related Illness

Health problems that are directly or indirectly caused by stress, which can affect both the body and the mind.