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

question 18

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

---

Definitions:

Validity Rules

Principles or guidelines used to determine the logical correctness of an argument, ensuring that if the premises are true, the conclusion must also be true.

Categorical Syllogisms

A form of reasoning where two premises lead logically to a conclusion, with each statement dealing with categories of things.

Validity Rules

The criteria or guidelines used to determine whether an argument is logically consistent and its conclusions follow from its premises.

Validity Rules

The principles or criteria used to evaluate the soundness of an argument or reasoning process, ensuring that if the premises are true, the conclusion must also be true.