Question

please answer 28-32

28. At year end, a physical count of office supplies reveals that $7,000 of ou plies were used up but no adjusting entry was made to account for thie If this error is found, it will most likely be because ... a. the trial balance would be out of balance by $7,000 b. the trial balance would be out of balance by $14,000 c. the trial balance would be out of balance by $3,500 d. none of the above 29. If the omission in question 28 is found before the books are closed, the adjusting entry to correct the error will include ... a. a debit to Office Supplies Expense b. a credit to Office Supplies Expense c. a debit to Inventory d. none of the above 30. The type of error given in question 28 is known as a. a deferral error b. an accrual error c. a prior period error d. none of the above 31. OutCo failed to record depreciation on certain machinery for 20X1. This error a. affects the income statement only b. affects the balance sheet only c. affects both the income statement and the balance sheet d. affects neither the income statement nor the balance sheet 32. Preventing or discovering accounting errors requires knowing and using a. double-entry bookkeeping b. internal controls c. inspection of the trial balance d. all of the above

Answer 1

1) answer is option d

the adjusting entry for supplies

office supplies expense a/c dr

To supplies(inventory)

supplies(asset) and office supplies expense are shown on debit side of trial balance ...if adustment is made balance of suppies will be deducted and balance of office supplies expense will be increased ...

so adustment will not affect the total of trial balance....

2)answer is A

journal entry

office supplies expense a/c dr

To supplies

3) answer is C

4) answer is C

journal entry for providing depreciation on machinery

depreciation a/c dr

To machinery

if depreciation is not provided it means the expense are under valued and the machinery is overvalued ....

5) answer is D

The double-entry system of accounting or bookkeeping means that for every business transaction, amounts must be recorded in a minimum of two accounts. The double-entry system also requires that for all transactions, the amounts entered as debits must be equal to the amounts entered as credits... so if any side of transaction are not recorded then it will affect trial balance...

An internal control is a procedure or policy put in place by management to safeguard assets, promote accountability, increase efficiency, and stop fraudulent behavior. internal control are also used by management for preventing the error ...

An unadjusted trial balance is prepared to check the accuracy of information posted in the general ledger. The suspense account is the main method used to detect errors that cause discrepancies between the debit and credit balances of the trial balance.