Prepare the Journal Entries for the Following Transactions

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.