In 2013, the Hermes Corporation Failed to Record $8,000 in Depreciation

question 143

Essay

In 2013, the Hermes Corporation failed to record $8,000 in depreciation expense. The error was discovered in May of 2014.
Required:
Make the appropriate journal entry in the books of Hermes Corporation in the year 2014. Explain the impact of the error correction on the Hermes' 2014 net income.

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Definitions:

Self-defeating Behavior

Self-defeating behavior is the engagement in actions or patterns that undermine one’s own success or well-being, often subconsciously.

Misfortune

The occurrence of an unfortunate or adverse event.

Tradeoff

A situation that involves losing one quality, aspect, or amount of something in return for gaining another quality, aspect, or amount.

Self-regulation

The ability to monitor and control one's own behavior, emotions, or thoughts, adapting to circumstances and achieving personal or professional goals.