Alpha Company buys $597,000 supplies for cash during the year and half are consumed by end...
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Alpha Company buys $597,000 supplies for cash during the year and half are consumed by end of year. The adjustment for usage was correctly journalized and posted. However, the journal entry for a purchase on account of $83,500 was erroneously posted twice to the ledger. Required 1: The error might or might not impact the trial balance and send it out of balance. If there is a difference between debits and credits, how much is it? $ Required 2: The error might or might not impact the Balance Sheet and send it out of balance. If there is a difference between debits and credits, how much is it? $ Required 3: The error might or might not impact the ending balance of Accounts Payable. If there is a difference between the correct and incorrect ending balance, how much is it? $ Required 4: The error might or might not impact the ending balance of Purchases of Supplies. If there is a difference between the correct and incorrect ending balance, how much is it? $ Required 5: The error might or might not impact the ending balance of Supplies Inventory. If there is a difference between the correct and incorrect ending balance, how much is it? $ Required 6: The error might or might not impact the period's Net Income. If there is a difference between the correct and incorrect Net Income, how much is it? Alpha Company buys $597,000 supplies for cash during the year and half are consumed by end of year. The adjustment for usage was correctly journalized and posted. However, the journal entry for a purchase on account of $83,500 was erroneously posted twice to the ledger. Required 1: The error might or might not impact the trial balance and send it out of balance. If there is a difference between debits and credits, how much is it? $ Required 2: The error might or might not impact the Balance Sheet and send it out of balance. If there is a difference between debits and credits, how much is it? $ Required 3: The error might or might not impact the ending balance of Accounts Payable. If there is a difference between the correct and incorrect ending balance, how much is it? $ Required 4: The error might or might not impact the ending balance of Purchases of Supplies. If there is a difference between the correct and incorrect ending balance, how much is it? $ Required 5: The error might or might not impact the ending balance of Supplies Inventory. If there is a difference between the correct and incorrect ending balance, how much is it? $ Required 6: The error might or might not impact the period's Net Income. If there is a difference between the correct and incorrect Net Income, how much is it?
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Answer rating: 100% (QA)
Impact of Alpha Companys Accounting Error The double posting of the 83500 purchase on account will impact several aspects of Alpha Companys accounting ... View the full answer
Related Book For
Introduction to Governmental and Not for Profit Accounting
ISBN: 978-0132776011
7th edition
Authors: Martin Ives, Terry K. Patton, Suesan R. Patton
Posted Date:
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