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Posted: March 30th, 2023
Overall Error Assignment
In early 2014, the auditors finally realized that Greyhound had consistently failed to accrue wages payable at the end of each of the last two years. Specifically, Greyhound had consistently failed to accrue wages payable at the end of the last two years. Specifically, Greyhound had failed to accrue wages payable of $80,000 as of 12/31/13 and $65,000 as of 12/31/12. Though related to hours worked in the respective months of December, these wages were not expensed until paid in the respective following months of January. No correcting entry has been made at this point and the 2013 income statement accounts have not yet been closed.
- Before any correcting entry is made, what is the impact of this overall error on net income for 2013? Please indicate if it is overstated or understated by $_______________
- Please prepare all necessary journal entries at 12/31/13 to correct the overall error. Get Accounting homework help today
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