When DeSoto Water Works purchased a machine at the end of 2017 at a cost of $65,000, the company debitedBuildings and credited Cash $65,000. The error was discovered in 2018. What journal entry will DeSoto use tocorrect the error? What other step(s) would be taken in connection with the error?
When DeSoto Water Works purchased a machine at the end of 2017 at a cost of $65,000, the company debitedBuildings and credited Cash $65,000. The error was discovered in 2018. What journal entry will DeSoto use tocorrect the error? What other step(s) would be taken in connection with the error?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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When DeSoto Water Works purchased a machine at the end of 2017 at a cost of $65,000, the company debited
Buildings and credited Cash $65,000. The error was discovered in 2018. What
correct the error? What other step(s) would be taken in connection with the error?
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