Langley Corporation replaced an HVAC system in one of its warehouses in July, 2021, at a cost of $430,000. The accountant recording the purchase charged it to repairs and maintenance expense. The error was discovered late in 2022 while reconciling depreciation expense for 2022. The system should last about 7 years with no salvage value. What entry should be made before the 2022 books are closed if the company uses straight-line depreciation? (Round intermediate calculations to the nearest cent and your final answer to the nearest dollar.) Group of answer choices Warehouse 430,000 Depreciation Expense—Warehouse 61,429 Retained Earnings 491,429 Warehouse 430,000 Depreciation Expense (2022)—Warehouse 61,429 Accumulated Depreciation—Warehouse92,144 Retained Earnings—Prior Period Adjustment 399,285 Warehouse 430,000 Accumulated Depreciation -Warehouse 61,429 Retained Earnings—Prior Period Adjustment 368,571 Retained Earnings—Prior Period Adjustment 430,000 Depreciation Expense—Warehouse 61,429 Warehouse 491,429
Langley Corporation replaced an HVAC system in one of its warehouses in July, 2021, at a cost of $430,000. The accountant recording the purchase charged it to repairs and maintenance expense. The error was discovered late in 2022 while reconciling depreciation expense for 2022. The system should last about 7 years with no salvage value. What entry should be made before the 2022 books are closed if the company uses straight-line depreciation? (Round intermediate calculations to the nearest cent and your final answer to the nearest dollar.) Group of answer choices Warehouse 430,000 Depreciation Expense—Warehouse 61,429 Retained Earnings 491,429 Warehouse 430,000 Depreciation Expense (2022)—Warehouse 61,429 Accumulated Depreciation—Warehouse92,144 Retained Earnings—Prior Period Adjustment 399,285 Warehouse 430,000 Accumulated Depreciation -Warehouse 61,429 Retained Earnings—Prior Period Adjustment 368,571 Retained Earnings—Prior Period Adjustment 430,000 Depreciation Expense—Warehouse 61,429 Warehouse 491,429
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 66P: At the end of 2020, Magenta Manufacturing Company discovered that construction cost had been...
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Question
Langley Corporation replaced an HVAC system in one of its warehouses in July, 2021, at a cost of $430,000. The accountant recording the purchase charged it to repairs and maintenance expense. The error was discovered late in 2022 while reconciling depreciation expense for 2022. The system should last about 7 years with no salvage value. What entry should be made before the 2022 books are closed if the company uses straight-line depreciation? (Round intermediate calculations to the nearest cent and your final answer to the nearest dollar.)
Group of answer choices
Retained Earnings 491,429
Accumulated Depreciation —Warehouse92,144 Retained Earnings—Prior Period Adjustment 399,285
Accumulated Depreciation -Warehouse 61,429 Retained Earnings—Prior Period Adjustment 368,571
Warehouse 491,429
| Warehouse | 430,000 | |
| Depreciation Expense—Warehouse | 61,429 |
| Warehouse | 430,000 | |
| Depreciation Expense (2022)—Warehouse | 61,429 |
| Warehouse | 430,000 | |
| Retained Earnings—Prior Period Adjustment | 430,000 | |
| Depreciation Expense—Warehouse | 61,429 |
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