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

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