Identify the effect of not recording the adjusting entry.

Question

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Answer 1

Question

Chapter 3, Problem 1MCQ

To determine

Identify the effect of not recording the adjusting entry.

Expert Solution & Answer

Answer to Problem 1MCQ

Option (b) Overstate net income by $350,000 is the correct answer.

Explanation of Solution

Option (a): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (a) Understate net income by $350,000 is not the correct answer.

Option (b): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (b) over-state the net income by $350,000 is the correct answer.

Option (c): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (c) Overstate assets by $350,000 are not the correct answer.

Option (d): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (d) Understate assets by $350,000 are not the correct answer.

Conclusion

As per the above explanation, Option (b) Overstate net income by $350,000 is the correct answer.

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A company sells a machinery asset which originally cost $250,000 for $90,000 on December 31, 2020. The Accumulated Depreciation account had a balance of $150,000 after the current year's depreciation had been recorded. The company should recognize__. a. $60,000 loss on disposal. b. $40,000 gain on disposal. c. $10,000 loss on disposal. d. $100,000 loss on disposal.

Answer 2

Question

Chapter 3, Problem 1MCQ

To determine

Identify the effect of not recording the adjusting entry.

Expert Solution & Answer

Answer to Problem 1MCQ

Option (b) Overstate net income by $350,000 is the correct answer.

Explanation of Solution

Option (a): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (a) Understate net income by $350,000 is not the correct answer.

Option (b): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (b) over-state the net income by $350,000 is the correct answer.

Option (c): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (c) Overstate assets by $350,000 are not the correct answer.

Option (d): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (d) Understate assets by $350,000 are not the correct answer.

Conclusion

As per the above explanation, Option (b) Overstate net income by $350,000 is the correct answer.

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Answer 3

Question

Chapter 3, Problem 1MCQ

To determine

Identify the effect of not recording the adjusting entry.

Expert Solution & Answer

Answer to Problem 1MCQ

Option (b) Overstate net income by $350,000 is the correct answer.

Explanation of Solution

Option (a): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (a) Understate net income by $350,000 is not the correct answer.

Option (b): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (b) over-state the net income by $350,000 is the correct answer.

Option (c): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (c) Overstate assets by $350,000 are not the correct answer.

Option (d): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (d) Understate assets by $350,000 are not the correct answer.

Conclusion

As per the above explanation, Option (b) Overstate net income by $350,000 is the correct answer.

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Answer 4

Question

Chapter 3, Problem 1MCQ

To determine

Identify the effect of not recording the adjusting entry.

Expert Solution & Answer

Answer to Problem 1MCQ

Option (b) Overstate net income by $350,000 is the correct answer.

Explanation of Solution

Option (a): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (a) Understate net income by $350,000 is not the correct answer.

Option (b): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (b) over-state the net income by $350,000 is the correct answer.

Option (c): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (c) Overstate assets by $350,000 are not the correct answer.

Option (d): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (d) Understate assets by $350,000 are not the correct answer.

Conclusion

As per the above explanation, Option (b) Overstate net income by $350,000 is the correct answer.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 3, Problem 1MCQ

To determine

Identify the effect of not recording the adjusting entry.

Expert Solution & Answer

Answer to Problem 1MCQ

Option (b) Overstate net income by $350,000 is the correct answer.

Explanation of Solution

Option (a): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (a) Understate net income by $350,000 is not the correct answer.

Option (b): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (b) over-state the net income by $350,000 is the correct answer.

Option (c): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (c) Overstate assets by $350,000 are not the correct answer.

Option (d): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (d) Understate assets by $350,000 are not the correct answer.

Conclusion

As per the above explanation, Option (b) Overstate net income by $350,000 is the correct answer.

Answer 6

Chapter 3, Problem 1MCQ

To determine

Identify the effect of not recording the adjusting entry.

Expert Solution & Answer

Answer to Problem 1MCQ

Option (b) Overstate net income by $350,000 is the correct answer.

Explanation of Solution

Option (a): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (a) Understate net income by $350,000 is not the correct answer.

Option (b): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (b) over-state the net income by $350,000 is the correct answer.

Option (c): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (c) Overstate assets by $350,000 are not the correct answer.

Option (d): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (d) Understate assets by $350,000 are not the correct answer.

Conclusion

As per the above explanation, Option (b) Overstate net income by $350,000 is the correct answer.

Answer 7

Chapter 3, Problem 1MCQ

To determine

Identify the effect of not recording the adjusting entry.

Answer 8

Expert Solution & Answer

Answer to Problem 1MCQ

Option (b) Overstate net income by $350,000 is the correct answer.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Option (a): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (a) Understate net income by $350,000 is not the correct answer.

Option (b): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (b) over-state the net income by $350,000 is the correct answer.

Option (c): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (c) Overstate assets by $350,000 are not the correct answer.

Option (d): If the Company forgot to record the accrued and unpaid wages of $350,000 will over-state the net income. Hence, Option (d) Understate assets by $350,000 are not the correct answer.