Error in accounting
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You have completed the auditing of Company A and have found $10,000 purchase of a fixed asset was recorded as maintance expense. The company has $100,000 million in fixed assets, net income of 15 million and total assets of 500,000 million? What should the company do when they find out about this error in accounting?
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The expert determines error in accounting.
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1) If the error is discovered during the same year when the error is made, the following adjusting entry should be made,
Fixed assets 10,000
Maintenance expense 10,000
To record the depreciation expense,
Depreciation expense XXX
Accumulated depreciation XXX (The amount ...
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