Anonymous
Anonymous asked in Business & FinanceOther - Business & Finance · 1 month ago

Correcting entries for year end ?

The auditor gave me these entries to correct for year end. 

Reclass equip -8,560 (computer software accnt)

Reclass equip 8,560 (retained earning accnt)

Is the negative amount a debit entry and the credit amount a credit entry?

Confused and need to make sure..please advise 

1 Answer

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  • John
    Lv 6
    1 month ago

    I usually don't help with school work, but I have to admit this is a good question.  I can see where the question itself could be unclear.  I would say the minus figure is a credit.  That's because (1) reducing any asset is done by a credit, and (2) if it means to subtract $8,560 from Computer Software, its again done with a credit.  Software is usually an intangible asset.

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