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olchik [2.2K]
3 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]3 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 SBA is a source of assistance that provides small businesses with the following
Colt1911 [192]

Answer:

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Explanation:

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3 years ago
Fiedler's contingency theory of leadership suggests that leaders should be placed in leadership situations that best fit with th
rodikova [14]

Answer:

Explanation:

Suppose, you are a team leader & perhaps your opinion is huge and respected by your workers. Then;

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Confident is better-suited for  relationship-motivated leadership

Similarly, a scenario where we can have a task motivated leadership is as follows:

Let assume that, your workers are working on a project and you're not present there as a team leader.

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2 years ago
An entrepreneur founded his company using $200,000 of his own money, issuing himself 200,000 shares of stock. An angel investor
nikitadnepr [17]

Answer:

the post money valuation of the company is $1,750,000

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The computation of the post money valuation is shown below:

Given that

Value of 400,000 shares is  $1 million.

So,

The Value of 1 share is

= $1 million ÷ 400,000

= $2.5

And,  

Total number of shares is

= 400,000 + 200,000 + 100,000

= 700,000

Now  

Total value of shares is

= $2.5 × 700,000

= $1,750,000

hence, the post money valuation of the company is $1,750,000

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2 years ago
What is your account balance after one year if you deposited 2000.00 earning 4% interest, compounded annually
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2000+80=
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