Accountants at Amalgamated Corporation Incorrectly Journalized a $50,000 Equipment Purchase

question 127

Multiple Choice

Accountants at Amalgamated Corporation incorrectly journalized a $50,000 equipment purchase as a debit to Buildings.This error was not discovered before the journal entry was posted.What is the correcting entry?

• A)Debit Buildings and credit Equipment for $50,000 each.
• B)Debit Equipment and credit Buildings for $50,000 each.
• C)Debit Buildings and credit Equipment for $100,000 each.
• D)Debit Equipment and credit Buildings for $100,000 each.
• E)Debit Equipment for $100,000 and credit Buildings for $50,000.

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Definitions:

Statistical Forecasting

The process of using statistical methods to predict future values based on past data and trends.

Causal Analysis

A method of identifying and evaluating the factors that cause a particular outcome or event.

Curvilinear Extrapolation

A forecasting technique that projects future data points by extending a curve that represents past data trends, accounting for changes in direction or rate.

Marketing Experiment

A research method where variables are manipulated in a controlled environment to test hypotheses about marketing strategies or consumer behavior.