For each of the following errors, indicate whether the error would cause the accounting equation to 1w out of balance and, if so, indicate how it would be out of balance. (a) The purchase of land for $85,000 cash was recorded as an increase in land of $85000 and a decrease in cash of $58,000. (b) The receipt of $7,000 for fees earned was recorded as an increase in cash of $7,000 and an increase in liabilities of $7,000.

BuyFind

Survey of Accounting (Accounting I)

8th Edition
Carl Warren
Publisher: Cengage Learning
ISBN: 9781305961883
BuyFind

Survey of Accounting (Accounting I)

8th Edition
Carl Warren
Publisher: Cengage Learning
ISBN: 9781305961883

Solutions

Chapter
Section
Chapter 2, Problem 4CDQ
Textbook Problem

For each of the following errors, indicate whether the error would cause the accounting equation to 1w out of balance and, if so, indicate how it would be out of balance. (a) The purchase of land for $85,000 cash was recorded as an increase in land of $85000 and a decrease in cash of $58,000.
(b) The receipt of $7,000 for fees earned was recorded as an increase in cash of $7,000 and an increase in liabilities of $7,000.

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Chapter 2 Solutions

Survey of Accounting (Accounting I)
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