Maintenance expense error in a prior year
Not what you're looking for?
10. (1) In 2009, Sage Company discovered that a building addition completed December 30, 2006, at a cost of $360,000 was charged to building and maintenance expense in error. The cost should have been charged to the buildings account. At December 31, 2009, the building addition had 22 years of life remaining and a $100,000 residual value. The entry that should be made as of January 1, 2009, is:
A. Buildings 23,040
Building maintenance expense 23,040
B. Buildings 360,000
Retained earnings 360,000
C. Buildings 360,000
Accumulated depreciation 20,800
Cumulative effect of a prin change 339,200
D Buildings 360,000
Accumulated depreciation 20,800
Retained earning 339,200
Purchase this Solution
Solution Summary
The solution explains the correct entry to rectify the maintenance expense error in a prior year
Solution Preview
The entry to pass is
D Buildings 360,000
Accumulated depreciation 20,800
Retained ...
Purchase this Solution
Free BrainMass Quizzes
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Motivation
This tests some key elements of major motivation theories.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.