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Molodets [167]
3 years ago
14

For each of the following errors, considered individually, indicate whether the error would cause the adjusted trial balance tot

als to be unequal. If the error would cause the adjusted trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much.
a. The adjustment for accrued wages of $5,200 was journalized as a debit to Wages Expense for $5,200 and a credit to Accounts Payable for $5,200.
b. The entry for $1,125 of supplies used during the period was journalized as a debit to Supplies Expense of $1,125 and a credit to Supplies of $1,152.
Business
1 answer:
Mice21 [21]3 years ago
5 0

Answer:

a) The debit  and credit side of the unadjusted trial balance would be increased by $ 5200.

b) The debit side would remain unchanged. No effect will be seen  in the adjusted trial balance.

Explanation:

Effect of adjustments on adjusted Trial Balance.

This first entry would increase the wages expense and increase the liability account in the adjusted trial balance. Both debit and credit side would be increased by an equal amount.

b) This would decrease the Supplies account and increase the supplies expense in the unadjusted account. As both are on the debit side there would be no effect in the debit total.

Sr No                Account                    Debit          Credit

<u>Original Entries</u>

a.               Wages Expense            5200

                      Accounts Payable                         5200

b.             Supplies Expense          1125

                        Supplies Account                          1125

<u>Correct Entries</u>

a.                  Wages Expense          5200

                          Accrued Wages Account Payable       5200

b.             Supplies Expense          1125

                        Supplies Account                          1125

<u>Difference:</u>

<u>a)</u> We see that the first entry which was original passed the debit side is correct but the credit side would have been of accrued wages instead of accounts payable . This is to raise the amount by which wages are still outstanding by an amount 5200 at the end of the month.

This would decrease the accounts payable increase the wages payable . If the adjustment is not made it the salaries payable is understated .

<u>b)This adjusting entry is correct.</u>

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Explanation:

1 . The cost of removing the existing structure should be included in the land account, in the sense that, It is the cost of preparation of the land for the purpose for which it was purchased.

2. Depreciation can be defined as a decrease or fall in the value of fixed asset, it is the part of the cost of fixed asset consumed during the period of use of the asset by the firm. It allocated that is set to measure the service the asset has provided during the accounting period.

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Answer:

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<h2>What is corporate partner?</h2>

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