The Following Journal Entry (Incorrectly)recorded the Purchase of Office Supplies

question 80

Multiple Choice

The following journal entry (incorrectly) recorded the purchase of office supplies for $1,200 on credit: If only one entry is to be made to correct this entry it would be:

• A) None required.The original entry above is correct.

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Definitions:

Book Value

The net value of a company's assets less its liabilities and intangible assets.

Abnormal Earnings

Profits that exceed or fall below what is typically expected, often due to unusual events or one-time gains and losses.

Actual Earnings

The real income a company generates from its business activities, distinct from its reported or projected earnings.

Earnings Capitalization

A method for valuing a company by dividing its annual earnings by a certain capitalization rate, reflecting the investment's expected rate of return.