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6- A bill for 740 TL for office supplies purchased on account was debited to equipment, 470 TL and credited to accounts payable, 470 TL. Correct the error and indicate whether or not the erroneous entry affected net income (e.g. overstated or understated?).

6- A bill for 740 TL for office supplies purchased on account was debited to equipment, 470 TL and credited to accounts payable, 470 TL. Correct the error and indicate whether or not the erroneous entry affected net income (e.g. overstated or understated?).

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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6- A bill for 740 TL for office supplies purchased on account was debited to equipment, 470 TL and credited to accounts payable, 470 TL. Correct the error and indicate whether or not the erroneous entry affected net income (e.g. overstated or understated?). Yanıtınız 7- When making the entry to record the year's depreciation expense, the bookkeeper debited accumulated depreciation for 1.000 TL and credited cash for 1.000 TL. Prepare the correcting entry for this transaction. Yanıtınız
Transcribed Image Text:6- A bill for 740 TL for office supplies purchased on account was debited to equipment, 470 TL and credited to accounts payable, 470 TL. Correct the error and indicate whether or not the erroneous entry affected net income (e.g. overstated or understated?). Yanıtınız 7- When making the entry to record the year's depreciation expense, the bookkeeper debited accumulated depreciation for 1.000 TL and credited cash for 1.000 TL. Prepare the correcting entry for this transaction. Yanıtınız
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