On September 1, Pike Products purchases $5,000 of supplies from Indigo Industries, with the understanding that Pike will provide payment within 60 days. When posting the journal entries related to this transaction, Pike's accounting staff debits Supplies for $5,000 and debits Cash for $5,000. Which of the following statements best describes the results of this posting?
A In Pike’s general ledger, the ending balance for the Cash account will be correct. However, the ending balance for the Supplies account will be too low, while the ending balance for the Accounts Payable account will be too high.
B In Pike’s general ledger, the ending balance for the Supplies account will be correct. However, the ending balance for the Cash account will be too low, while the ending balance for the Accounts Payable account will be too high.
C In Pike’s general ledger, the ending balance for the Supplies account will be correct. However, the ending balance for the Cash account will be too high, while the ending balance for the Accounts Payable account will be too low.
D In Pike’s general ledger, the ending balance for the Cash account will be correct. However, the ending balance for the Supplies account will be too high, while the ending balance for the Accounts Payable account will be too low.

Question

05-07-2021
Business

Answered

Discover new perspectives and gain insights with IDNLearn.com. Ask any question and get a thorough, accurate answer from our community of experienced professionals.

On September 1, Pike Products purchases $5,000 of supplies from Indigo Industries, with the understanding that Pike will provide payment within 60 days. When posting the journal entries related to this transaction, Pike's accounting staff debits Supplies for $5,000 and debits Cash for $5,000. Which of the following statements best describes the results of this posting?
A In Pike’s general ledger, the ending balance for the Cash account will be correct. However, the ending balance for the Supplies account will be too low, while the ending balance for the Accounts Payable account will be too high.
B In Pike’s general ledger, the ending balance for the Supplies account will be correct. However, the ending balance for the Cash account will be too low, while the ending balance for the Accounts Payable account will be too high.
C In Pike’s general ledger, the ending balance for the Supplies account will be correct. However, the ending balance for the Cash account will be too high, while the ending balance for the Accounts Payable account will be too low.
D In Pike’s general ledger, the ending balance for the Cash account will be correct. However, the ending balance for the Supplies account will be too high, while the ending balance for the Accounts Payable account will be too low.

Sagot :

We appreciate your presence here. Keep sharing knowledge and helping others find the answers they need. This community is the perfect place to learn together. Your questions deserve reliable answers. Thanks for visiting IDNLearn.com, and see you again soon for more helpful information.

In The Movie X-Men: First Class (2011), The Character Mystique Must Decide Between Defending The People Who Hate Her Or Using Violence To Gain Human Rights. Wha

What Is The Movement Of Ocean Crust Called

What Are The Two Phases During Which The Moon Appears Almost Full, But Not Quite

Abigail Is Putting Tiles On A Table Top. She Needs 48 Tiles For Each Row Of 8. Each Row Will Have 6 White Tiles. The Rest Of The Tiles Will Be Purple. How Many

If The Ratio Of Pink Flowers To Blue Flowers Is 3 To 6 And There Are Total 72 Flowers, How Many Of Them Are Pink? Show Your Work And Explain. I Need Help Please

The Westside Dog Kennel Is Building A Circular Dog Park The Length Of The Fence Around The Park Is Approximately 110 Feet How Much Area Will Do Dogs Have To Run

Each Chromosome Usually Contains Multiple Genes True False

Which Statement Best Describes A Benefit Of Civic Participation?

How Do I Solve? Hereford College Has Space For 450 Students In The Freshman Class. The College Estimates That 60% Of The Students Who Are Admitted Will Actually

Use The Cues To Rewrite The Sentences As One Sentence. Do Not Use Who(m) Which Or That 1) Ben Wrote A Poem For The Competition. It Won First Prize. ( The Poem..

Topeadeniran2idn Topeadeniran2idn · Answer 1 · 2021-07-10T22:52:20-04:00

Answer: C. In Pike’s general ledger, the ending balance for the Supplies account will be correct. However, the ending balance for the Cash account will be too high, while the ending balance for the Accounts Payable account will be too low

Explanation:

Since the journal entries that are related to this transaction, shows that Pike's accounting staff debits Supplies for $5,000 and debits Cash for $5,000, then it can be deduced that the results of the posting is that in Pike’s general ledger, the ending balance for the Supplies account will be correct. However, the ending balance for the Cash account will be too high, while the ending balance for the Accounts Payable account will be too low.

Therefore, the correct option is C.

Sagot :

Other Questions