In: Accounting
Hanson Company has an inexperienced accountant. During the first month on the job, the accountant made the following errors in journalizing transactions. All entries were posted as made.
Instructions
(a) Correct the errors by reversing the incorrect entry and preparing the correct entry.
(b) Correct the errors without reversing the incorrect entry.
a) | Reverse of incorrect entry | Correct Entry | |||||||||||
Events | Particulars | Debit | Credit | Events | Particulars | Debit | Credit | ||||||
1) | Accounts Payable | $ 1,150.00 | 1) | Supplies | $ 1,510.00 | ||||||||
To Supplies | $ 1,150.00 | To Accounts Payable | $ 1,510.00 | ||||||||||
2) | Cash | $ 650.00 | 2) | Office Supplies | $ 650.00 | ||||||||
To Equipment | $ 650.00 | To Cash | $ 650.00 | ||||||||||
3) | Cash | $ 900.00 | 3) | Drawings | $ 500.00 | ||||||||
To Salaries and Wages Expense | $ 900.00 | To Cash | $ 500.00 | ||||||||||
4) | Cash | $ 280.00 | 4) | Accounts Payable | $ 820.00 | ||||||||
To Accounts Payable | $ 280.00 | To Cash | $ 820.00 | ||||||||||
5) | Cash | $ 700.00 | 5) | Salaries and Wages Expense | $ 700.00 | ||||||||
To Equipment | $ 700.00 | To Cash | $ 700.00 | ||||||||||
6) | Service Revenue | $ 100.00 | 6) | Cash | $ 1,000.00 | ||||||||
To Cash | $ 100.00 | To Accounts Receivable | $ 1,000.00 | ||||||||||
7) | Accounts Payable | $ 670.00 | 7) | Equipment | $ 760.00 | ||||||||
To Equipment | $ 670.00 | To Accounts Payable | $ 760.00 |
b) | Rectifying Entries | ||||
Events | Particulars | Debit | Credit | ||
1) | Supplies | $ 360.00 | |||
To Accounts Payable | $ 360.00 | ||||
2) | Office Supplies | $ 650.00 | |||
To Equipment | $ 210.00 | ||||
To Cash | $ 440.00 | ||||
3) | Drawings | $ 500.00 | |||
Cash | $ 400.00 | ||||
To Salaries and Wages Account | $ 900.00 | ||||
4) | Accounts Payable | $ 540.00 | |||
To Cash | $ 540.00 | ||||
5) | Salaries and Wages Expense | $ 700.00 | |||
To Equipment | $ 700.00 | ||||
6) | Cash | $ 900.00 | |||
Service Revenue | $ 100.00 | ||||
To Accounts Receivable | $ 1,000.00 | ||||
7) | Equipment | $ 90.00 | |||
To Accounts Payable | $ 90.00 |