The Jessica Co. has the following errors on its books as of December 31, 2020. The books for 2020 have not yet been closed.a.On January 1, 2018, 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, 2019, 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, 2020. Ignore income taxes.

Journal entries, we make in our business either economic or non economics, it helps to keep records…

Answered: The Jessica Co. has the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Jessica Co. has the following errors on its books as of December 31, 2020. The books for 2020 have not yet been closed.

a.	On January 1, 2018, 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, 2019, 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, 2020. Ignore income taxes.

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