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olchik [2.2K]
2 years ago
15

The adjusting entry for accrued wages was omitted at July 31, the end of the current year. Indicate which items will be in error

, because of the omission, on (a) the income statement for the current year and (b) the balance sheet as of July 31. Also indicate whether the items in error will be overstated or understated.
Business
1 answer:
Leni [432]2 years ago
6 0

Answer:

In the income statement,

Wages expense account (expenses) - understated

Net income - Overstated

(b) In the balance sheet

Accrued wages (liability) - Understated

Owners equity - Overstated

Explanation:

Accrued wages refers to wages tat have been incurred by an entity that are yet to be paid. it is a liability. To recognize this in the book, debit the wage expense account and credit accrued wages.

Hence, omitting accrued wages would mean that the corresponding wage expense would have been omitted. This would result in an understatement of expenses, an overstatement of net income in the income statement.

In the balance sheet, because the accrued wages account is a liability account, the liabilities would be understated while the owners equity would be overstated (due to the overstatement of net income).

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The August 31 balance shown on the bank statement is $9,813.
Andrej [43]

Answer:

Adjusted Balance per bank $9,199

Adjusted Balance per books $9,199

Explanation:

Preparation of a bank reconciliation as of August 31

Balance per bank on August 31 $9,813

Add Deposit in transit $1,263

Less Outstanding checks ($1,877)

Adjusted Balance per bank $9,199

Balance per books on August 31 $9,371

Add Interest earned $116

Less Bank charge ($35)

Less Error in Books ($253)

($626-$373)

Adjusted Balance per books $9,199

Therefore the bank reconciliation as of August 31 will be:

Adjusted Balance per bank $9,199

Adjusted Balance per books $9,199

7 0
2 years ago
Which relationship might suggest a heightened risk of fraud in the acquisition and payment cycle? a. Unexpected increases in the
masha68 [24]

Answer:

The correct answer is letter "A": Unexpected increases in the number of suppliers.

Explanation:

Frauds or money cleansing usually requires the help of a network of different business interconnected to clear the illegal funds with the excuse of having made commercial activities that never took place. In most cases, accounting documents are faked so that the proceeds of the questionable funds may seem as legal as possible.

In that case, if a company counts with more suppliers and fraud is taking place in the organization, <em>they will have the excuse of making more payments so more funds can go out of the company</em>.

7 0
3 years ago
Sam has been directed to study the demographic, economic, political, and cultural forces that affect an organization. In this in
viva [34]

Answer:

Macro environment

Explanation:

The macro environment refers to external factors of the organization that can affect its performance and results. For a company it is important to study this factors to know the environment in which it is going to work and be able to develop strategies and goals that adjust to this.

5 0
3 years ago
In Appellia, it takes 10 units of resources to increase its output of sugar from 12 tons to 13 tons, but 11 units of resources t
EleoNora [17]

Answer:

b. diminishing returns to specialization.

Explanation:

Diminishing returns is also called diminishing productivity. It states that as additional unit of input is used in production it will get to a stage where more of input will be required to maintain output levels.

If the same level of input is used it will result in reduction in output over time.

This is exemplified in this secanrio where it takes 10 units of resources to increase its output of sugar from 12 tons to 13 tons, but 11 units of resources to increase output from 13 tons to 14 tons, and 12 units of resources to increase output from 14 tons and 15 tons.

It takes more input to increase output by 1 ton

7 0
2 years ago
which of the following consumer credit acts examines lenders’ practices regarding race, religion, national origin, color, gender
photoshop1234 [79]

The Consumer Credit Acts which <em>examines lenders’ practices </em>regarding race, religion, national origin, color, gender, marital status, or age is the:

  • <u>Equal Credit Opportunity Act (ECOA)</u>

According to the given question, we are asked to show the Consumer Credit Acts which <em>examines lenders’ practices </em>regarding race, religion, national origin, color, gender, marital status, or age

As a result of this, we can see that the Consumer Credit Act which has the job of enforcing the consumer protection so that <em>people would not be denied credit </em>based on their gender, age, race, religion, sex, marital status, etc.

Read more here:

brainly.com/question/15547556

5 0
2 years ago
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