Essay
The Jessica Co. has the following errors on its books as of December 31, 2016. The books for 2016 have not yet been closed.
a.On January 1, 2014, a machine had been purchased for $6,500. The machine had an estimated life of five years, but it was expensed in error. Straight-line depreciation with no salvage value should have been used.
b.On January 1, 2015, the company bought a four-year insurance policy for $800 and immediately charged the full premium to expense.
Required:
Prepare journal entries to correct these errors on December 31, 2016. Ignore income taxes.
Correct Answer:
Verified
Correct Answer:
Verified
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