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
- JohnLv 61 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.