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Question - On 30 June 2017, Timon Ltd omits to process some items on the last day of the ?nancial year. The accountant had inadvertently capitalised $12,600 of repair expenses to the Machinery account and consequently omitted an additional $250 of depreciation expenses. The accountant has also forgot to pay a telephone account that was due to be paid by 30 June 2017 for $75.
Management reviewed the accounts in October 2017 and decided that the misreporting of the machinery expenses is regarded as material bit the overdue telephone account was not.
Show the general journal entry to record the overlooked items. Include a narration.
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