Financial Accounting in the Correction of Journal Errors
Not what you're looking for?
Correcting Entries:
The following errors were made in journalizing and posting transactions in May in the Unruh Company.
1. An $800 payment for repairs incurred on account and properly recorded in April was debited to Repair Expense $800 and credited to Cash $800.
2. A collection of $2,000 on account from a customer was recorded as a debit to Cash $200 and a credit to Accounts Receivable $200.
3. A bill for $650 for new office equipment was debited to Office Supplies $560 and credited to Accounts Payable $560.
4. The receipt of $600 from a customer for future service was recorded as a debit to Accounts Receivable $600 and a credit to Service Revenue $600.
Instructions
Prepare the correcting entries at May 31 assuming the incorrect entry is not reversed. (Omit explanations.)
Purchase this Solution
Solution Summary
This question involves the fundamentals of accounting
Solution Preview
Hi there,
<br>
<br>1. Note, if this payment was made on account, then no cash would have left the premises. The correct entry would have been:
<br>DR: Repairs expense $800
<br>CR: Accounts Payable $800
<br>
<br>But first, one needs to reverse the entry ...
Purchase this Solution
Free BrainMass Quizzes
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Lean your Process
This quiz will help you understand the basic concepts of Lean.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.