Final answer:
To correct the erroneous journal entry for equipment purchase debited to Land, reverse the initial entry by debiting Equipment for $5,500 and crediting Land for $5,500.
Step-by-step explanation:
When correcting an accounting error for the improper recording of an asset purchase, it is essential to reverse the incorrect entry and record the proper entry. In this case, since equipment was purchased and not land, the accountant must reverse the initial entry to Land and debit the correct asset account, which is Equipment. The following journal entry will correct the error:
- Debit Equipment for $5,500
- Credit Land for $5,500
This entry removes the incorrect amount from the Land account and records it under the Equipment account, accurately reflecting the purchase of the new equipment. Note that no cash or payable accounts are affected by this correcting entry as they were presumably recorded correctly at the time of the initial transaction.