Application Problem Journalizing correcting entries and correcting posting errorsLO7, 8The following errors were discovered after the incorrect entries were alreadyjournalized and posted.Transactions:Aug. 1. Discovered that a transaction for utilities expense was journalized and postedin error as a debit to Repairs Expense instead of Utilities Expense, $530.00. M66.5. Discovered that a cash investment by Vivian Lynum, owner, was journalized andposted in error as a credit to Sales instead of Vivian Lynum, Capital, $1,200.00. M67.Instructions:1. Journalize each correcting entry discovered during August of the current year. Usepage 15 of the journal given in the Working Papers.2. It was also discovered that two posting errors were made in the Supplies account.The July 6 entry amount should have been $360.00. The July 30 entry included a creditto the Supplies account for $140.00 that should have been a debit. Using the accountprovided in the Working Papers and the information given, correct the two postingerrors.
Application Problem Journalizing correcting entries and correcting posting errors
LO7, 8
The following errors were discovered after the incorrect entries were already
journalized and posted.
Transactions:
Aug. 1. Discovered that a transaction for utilities expense was journalized and posted
in error as a debit to Repairs Expense instead of Utilities Expense, $530.00. M66.
5. Discovered that a cash investment by Vivian Lynum, owner, was journalized and
posted in error as a credit to Sales instead of Vivian Lynum, Capital, $1,200.00. M67.
Instructions:
1. Journalize each correcting entry discovered during August of the current year. Use
page 15 of the journal given in the Working Papers.
2. It was also discovered that two posting errors were made in the Supplies account.
The July 6 entry amount should have been $360.00. The July 30 entry included a credit
to the Supplies account for $140.00 that should have been a debit. Using the account
provided in the Working Papers and the information given, correct the two posting
errors.
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