Question

Question 30 incorrect Mark 0.00 out of 1.00 P Flag question Edit Question The accountant at Bewildered Company recorded the purchase of $1,200 of supplies for cash as a debit to Supplies for $1.200 and a credit to Accounts Payable for 51,200. Determine the effect of this error on the accounting equation of Bewildered Company Select one: A. Total Liabilities will be understated by 51,200 B. Total Equity would be overstated by $1,200 C. Total Equity would be understated by $1,200 D. Total Assets would be overstated by 51,200 x

Answer 1

Answer is "Total Assets would be overstated by $1,200" Incorrect Entry 1,200 1,200 Supplies Accounts Payable Supplies Cash Correct Entry 1,200 1,200 Due to incorrect entry, total liabilities is overstated by $1,200 and total assets is overstated by $1,200.