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Langley Corporation Replaced an HVAC System for One of Its

Question 32

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

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