Question
While performing its monthly bank reconciliation, the bookkeeper for the Partin Company discovered that a check written for $421 for advertising expense was recorded in
While performing its monthly bank reconciliation, the bookkeeper for the Partin Company discovered that a check written for $421 for advertising expense was recorded in the firm's books as $241. Which of the following shows the effect of the correcting entry on the financial statements?
| Assets | = | Liab. | + | Equ. | Rev. | - | Expenses | = | Net Inc. | Cash | |
| A | 241 | = | NA | + | 241 | 241 | - | NA | = | 241 | 241 OA |
| B | (180) | = | NA | + | (180) | NA | - | 180 | = | (180) | (180) OA |
| C | 180 | = | NA | + | 180 | NA | - | (180) | = | 180 | 180 OA |
| D | 180 | = | NA | + | 180 | 180 | - | NA | = | 180 | NA |
Choice A
Choice B
Choice C
Choice D
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Managerial Accounting Creating Value in a Dynamic Business Environment
Authors: Ronald Hilton, David Platt
10th edition
78025664, 978-0078025662
