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Could you help me to explain in detail the answers please! Thank you When preparing the financial statements for the year ended October 31, accrued
Could you help me to explain in detail the answers please! Thank you When preparing the financial statements for the year ended October 31, accrued salaries owed to employees for October 30 and 31 were accrued salaries were included in the first salary payment in November. Indicate which items will be erroneously stated, because of failure to; the Initial error, on (A) the Income statement for the month of November and (B) the balance sheet as of November 30. a. Income Statement Salaries Expense Net Income b. Balance Sheet Stockholders' Equity Consider the accounts involved and work through the correct journal entries for both years, comparing them to the mistake. In essence, this mistake results in a double recording of a portion of the salaries expense in two different years. Which account should go on the balance sheet and which one on the income statement? Which effects carry over to the next year? Do some effects cancel themselves out
Could you help me to explain in detail the answers please! Thank you
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