All categories

3 years ago

The following errors took place in journalizing and posting transactions:

Business

1 answer:

yuradex [85]3 years ago

6 0

Answer:

Journal 1

Debit : Prepaid Expense $37,600

Credit : Cash $18,800

Credit : Insurance Expense $18,800

Journal 2

Debit : Dividends $18,000

Credit : Wages $18,000

Explanation:

Journal 1

The first error has to be corrected by debiting the Prepaid Expenses by twice the amount paid to cancel the effect of a credit entry made to that account. Cash is credited to show the correct credit entry that was supposed to be made. Insurance expense is credited to cancel the debit entry made to this account in error.

Journal 2

The error made is called error of principle. This is were the transaction is recorded in the wrong class of accounts. Simply, Debit the Dividends and credit the Wages Account to record and reverse the error out of the Wages Account into the Dividends Account.

You might be interested in

Difference between administrative manpower and technical manpower

saveliy_v [14]

Answer:

Here's ur answer

HAVE A NICE DAY

6 0

3 years ago

Read 2 more answers

When driving in the city, _____ may help you avoid traffic, but they may not be as safe or they may increase your travel time be

Darya [45]

The correct answer is side streets.
If you are in a hurry, it may be better to take a different route and drive through side streets in order to avoid the traffic which is usually present in the more 'popular streets.' However, side streets have a lot of traffic control lights, which may slow down your ride even more.

7 0

3 years ago

Read 2 more answers

The gross earnings of factory workers for Dinkel Company during the month of January are $400,000. The employer's payroll taxes

kari74 [83]

Answer:Please see answers in explanation column

Explanation:

a) Journal to record factory labor cost

Account titles and explanation Debit Credit

Factory Labor $480,000

Factory wages payable $400,000

Employer payroll taxes payable $80,000

Factory Labor=Factory wages payable+Employer payroll taxes payable

= $400,000 + $80,000 =$480,000

b) Journal to transfer factory labour to production

Account titles and explanation Debit Credit

Work in process inventory(480,000 x 75%) $360,000

Manufacturing Overhead(480,000 x 25%) $120,000

Factory Labor $480,000

3 0

3 years ago

When there is more choice for proceducers and consumers, that is a Command Economy.

yaroslaw [1]

Correct Answer: False

7 0

3 years ago

Which of the following are consistent with the efficient markets hypothesis? Check all that apply. You should spend several hour

denis23 [38]

Answer:

1. Stock markets reflect all available information about the value of stocks AND

2. Changes in stock prices are impossible to predict.

Explanation:

The characteristics that are consistent with the efficient markets hypothesis are that

1. Stock markets reflect all available information about the value of stocks

By definition efficient markets are those whose asset prices reflect all available information.

2. Changes in stock prices are impossible to predict.

The efficient market hypothesis has been described as a backbreaker for forecasters. In its crudest form it effectively says that the returns from speculative assets, are unforecastable.

3 0

3 years ago