Prepare the Necessary Correcting Entry for Each of the Following

question 163

Essay

Prepare the necessary correcting entry for each of the following.
a. A payment of $5000 for salaries was recorded as a debit to Supplies Expense and a credit to Cash.
b. A purchase of supplies on account for $1000 was recorded as a debit to Equipment and a credit to Accounts Payable.

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Definitions:

Parol Evidence Rule

A legal principle that prevents parties from presenting evidence of prior or contemporaneous agreements that contradict the terms of a written contract.

Vague

Lacking clarity or preciseness in thought, expression, or meaning.

Misrepresentation

The act of providing false information with the intent to deceive, often leading to harm or loss.

Contractual Obligations

Duties that are legally required to be performed under the terms of a contract.