Accounting · Error Correction
On 1 January 20X4, Cedar Co acquired a new delivery van for $35,000. The van has an estimated useful life of 5 years and a residual value of $5,000. Cedar Co uses the straight-line method for depreciation. On 31 December 20X4, it was discovered that a minor repair to the van costing $200 had been incorrectly debited to the motor vehicles cost account instead of the repairs expense account. State the journal entry required to correct the error regarding the minor repair.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Debit Depreciation Expense $200; Credit Motor Vehicles Cost $200
- 2Debit Repairs Expense $200; Credit Cash $200
- 3Debit Motor Vehicles Cost $200; Credit Repairs Expense $200
- 4Debit Repairs Expense $200; Credit Motor Vehicles Cost $200✓
Correct answer
Debit Repairs Expense $200; Credit Motor Vehicles Cost $200
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