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11Alexandr11 [23.1K]
1 year ago
15

While in the process of posting from the journal to the ledger, a company failed to post a $500 debit to the equipment account.

the effect of this error will be that?
Business
1 answer:
shepuryov [24]1 year ago
5 0

While in the process of posting from the journal to the ledger, a company failed to post a $500 debit to the equipment account. the effect of this error will be that <u>the </u><u>trial balance</u><u> will not balance. </u>Option E

This is further explained below.

<h3>What is an equipment account.?</h3>

Generally, The cost of the equipment is reported through an accrued liabilities or long-term asset account known as the equipment account.

In conclusion, A corporation made a critical error while they were uploading transactions from the journal to the ledger because they forgot to report a debit of $500 to the equipment account.

The trial balance will not be accurate as a result of this error because it will throw off the calculations. Option E

Read more about the equipment account

brainly.com/question/14598373

#SPJ1

complete question

While in the process of posting from the journal to the ledger, a company failed to post a $500 debit to the Equipment account. The effect of this error will be that:

Multiple Choice

The Equipment account balance will be overstated.

The error will overstate the credits listed in the journal.

The total debits in the trial balance will be larger than the total credits.

The error will overstate the debits listed in the journal.

The trial balance will not balance.

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Answer:

$1000

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3 years ago
Panarin Company entered into two contracts on the same date with Hjalmarsson Corporation. Panarin has provided the following ana
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Answer:

a. The 2 contracts should be combined.

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Explanation:

Part a:

Answer: Yes. The 2 contracts should be combined.

Reasoning:

5-step revenue recognition model indicates identification of contracts with customer in the first step, identification of performance obligations of the contract in the second step, transaction price determination in the third step, allocation of transaction price to the performance obligations to the fourth step and recognition of revenue as the performance obligations in the fifth step. Therefore, two contracts should be combined.

Part b:

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There are two performance obligations:

Goods from contract A ($120,000 + ($5000 x 60%)) = $123000

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Reasoning: It is given that the stand-alone prices for Contract A is $120,000 and Contract B is $80,000. Contract price of Contract A is $125,000. Thus, the additional $5,000 should be split between the 2 contracts. Hence, the performance obligations for goods from contract A is $123,000 and goods from contract B is $82,000.

Part C:

Revenue should be recognized when control of goods has transferred to the customer.

Reasoning:

Performance obligation is satisfied when transfer the good or service to the customer. Recognize revenue when the performance obligation is satisfied is the fifth step of the 5-step revenue recognition model. Hence, revenue should be recognized when control of goods has transferred to the customer.

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3 years ago
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Ayayai Corp. uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $200,
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Answer:

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Therefore, the adjusting entry is as follows:

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