Question

The following journal entries were prepared by an employee of International Marketing Company who does not have an adequate knowledge of accounting.

GENERAL JOURNAL					PAGE 3
Date		Description	Post. Ref.	Debit	Credit
2019
April	1	Accounts Payable		14,200
		Fees Income			14,200
		Performed services on credit
	2	Cash		680
		Telephone Expense			680
		Paid for March telephone service, Check 1917
	3	Office Equipment		8,640
		Office Supplies		980
		Cash			10,200
		Purchased file cabinet and office supplies, Check 1918

(Assume that Office Equipment and Office Supplies were recorded at the correct values.)

Required:
Examine the above journal entries carefully and prepare the correcting journal entries.

Analyze:
After the correcting journal entries have been posted, what effect do the corrections have on the company’s reported assets?

note: Enter debits before credits.

	Date General Journal Debit Credit Apr 01, 2019

Answer 1