At Outersanctum Company, the Following Errors Were Discovered After the Transactions

question 54

Essay

At Outersanctum Company, the following errors were discovered after the transactions had been journalized and posted. Prepare the necessary correcting entry for each of the following.
a. A payment of $5,000 for salaries was recorded as a debit to Supplies Expense and a credit to Cash.
b. A purchase of supplies on account for $1,000 was recorded as a debit to Equipment and a credit to Accounts Payable.

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Definitions:

Introspection

The process of examining or observing one's own mental and emotional states.

Hallucinogens

Hallucinogens are a class of drugs that cause profound alterations in perception, mood, and thought, often leading to visual or auditory hallucinations.

Risk of Dependence

The potential for becoming reliant on a substance or activity, often resulting in physical or psychological addiction.

Withdrawal Symptoms

Physical or psychological symptoms that occur after reducing or stopping the intake of a substance, such as drugs or alcohol, to which the body has become accustomed.