Question

Question 2

Required:

1. Prepare a single journal entry, with explanation, for each of the following transactions to correct the error made:

1. Debited office furniture and credited accounts payable regarding a $ 6,000 purchase of computer equipment on account.
2. Accrued a $ 12,000 bonus by debiting salary expense and crediting accounts payable.
3. Adjusted prepaid advertising by debiting prepaid advertising and crediting advertising expense for $ 3,000. This adjusting journal entry should have debited advertising expense and credited prepaid advertising for $ 3,000.
4. Debited accounts receivable and credited revenue $ 5,000 for work not yet performed.
5. Debited amortization expense and credited computer equipment $ 4,000 when recording the amortization expense.

2. Prepare two journal entries, with explanation, for each of the above transactions to correct the error made.

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.
Event	Type	Account	Debit	Credit
A	Reversal	Accounts Payable	$     6,000
		Office Furniture		$     6,000
	Correction	Computer Equipment	$     6,000
		Accounts Payable		$     6,000
B	Reversal	Accounts Payable	$   12,000
		Salaries Expense		$   12,000
	Correction	Salaries Expense	$   12,000
		Salaries Payable		$   12,000
C	Reversal	Advertising Expense	$     3,000
		Prepaid Advertising		$     3,000
	Correction	Advertising Expense	$     3,000
		Prepaid Advertising		$     3,000
D	Reversal	Revenue	$     5,000
		Accounts Receivable		$     5,000
	Correction	Accounts Receivable	$     5,000
		Unearned Revenue		$     5,000
E	Reversal	Computer Equipment	$     4,000
		Amortization Expense		$     4,000
	Correction	Amortization Expense	$     4,000
		Accumulated Amortization Expense		$     4,000