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BCD Corporation paid $144,000 for a 3 year lease on May 31, 2019 and debited a...

  1. BCD Corporation paid $144,000 for a 3 year lease on May 31, 2019 and debited a nominal account when recording the payment. No correcting or adjusting entry was ever recorded.

    What is the error in the 2020 financial statements?

    Assets: U 68,000
    Liab: NE
    NI: O 48,000
    SHE: U 68,000

    Assets: O 76,000
    Liab: NE
    NI: O 48,000
    SHE: O 76,000

    Assets: NE
    Liab: O 68,000
    NI: O 48,000
    SHE: U 68,000

    Assets: U 68,000
    Liab: NE
    NI: U 68,000
    SHE: U 68,000

    None of the other answer choices is correct.

    Assets: U 116,000
    Liab: NE
    NI: U 116,000
    SHE: U 116,000

    Assets: U 20,000
    Liab: NE
    NI: O 48,000
    SHE: U 20,000
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BCD Corporation paid $144,000 for a 3 year lease on May 31, 2019 and debited a...
BCD Corporation paid $144,000 for a 3 year lease on May 31, 2019 and debited a nominal account when recording the payment. No correcting or adjusting entry was ever recorded. What is the error in the 2020 financial statements? Assets: NE Liab: O 68,000 NI: O 48,000 SHE: U 68,000 Assets: U 20,000 Liab: NE NI: O 48,000 SHE: U 20,000 Assets: O 76,000 Liab: NE NI: O 48,000 SHE: O 76,000 None of the other answer choices is correct....
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