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Q 3-6 - should be adjusted to reflect the expenses incurred...

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Q 3-6 The preliminary balance after the $260 debit will be of $1085 but the real balance at the end of January is $630. This means that a credit for $455 to the account should be made in order to reflect the real amount of supplies on hand ( http://www.accountingcoach.com/online-accounting- course/08Xpg02.html ). . Failure to do so would provide a wrong picture of the company’s asset Supply account on the balance sheet for the first month of the accounting year. The income statement for the period
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Unformatted text preview: should be adjusted to reflect the expenses incurred to debit the supply account in order to keep a proper balance. References: Easton, P., Halsey, R., McAnally, M., Hartgraves, A. & Morse, W. (2010). Financial & Managerial Accounting for MBAs . Canada: Cambridge Business Publishers. http://www.accountingcoach.com/online-accounting-course/08Xpg02.html...
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