Question

A bookkeeper erroneously recorded the accrual of wages payable using this journal entry: Sales Discount XX Depreciation Expense XX Indicate the effect of the error on Total Liabilities and Total Assets:

Answer 1

The Answer is explained below

Step-by-step explanation:

Wrong Entry

Sales discount xx

Accumulated Depreciation xx

It indicates that the income and assets both are decreased whilst the expense and should have been increased by making correct entry

Correct Entry

Wages xx

Wages payable xx