Reversing Entries-Misty Charnesky

Reversing Entries-Misty Charnesky - and similarly the...

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Running head: REVERSING ENTRIES 1 Reversing Entries Misty Charnesky XACC280 August 28, 2011 Mark Bull
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REVERSING ENTRIES 2 Reversing Entries If the accrued expense of $1400 was made for salaries in October the November entry would cause the totals to equal out of course. The reasoning is that since the salary is more than likely to be paid in November that would cause the $1400 to go to each side of the “T” table and in effect adding that said amount to both sides. The salary expense would be $1400 in November
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Unformatted text preview: and similarly the salaries payable would be $1400 as well. The October balance would be minus the accrued salaries to ensure that the amount did not get placed in both months. If the salaries are not reversed then the company could have an incorrect expense transaction monetary amount which in turn would give an inaccurate reading of the other parts of the financial report at the end of the year....
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Reversing Entries-Misty Charnesky - and similarly the...

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