Entries to Correct ErrorsThe following errors took place in journalizing and posting transactions:Insurance of $5,400 paid for the current year was recorded as a debit to Insurance Expense and a credit to Prepaid Insurance.A withdrawal of $12,000 by Brian Phillips, owner of the business, was recorded as a debit to Wages Expense and a credit to Cash.Journalize the entries to correct the errors. For part a, first reverse the original entry and then make the correct entry.a.Prepaid Insurance Insurance Expense Prepaid Insurance Cash b.Brian Phillips, Drawing Wages Expense

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Answered: Entries to Correct Errors The following…

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter4: Posting To A General Ledger

Section4.3: Journalizing Correcting Entries And Correcting Posting Errors

Problem 1WT

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Entries to Correct Errors

The following errors took place in journalizing and posting transactions:

Insurance of $5,400 paid for the current year was recorded as a debit to Insurance Expense and a credit to Prepaid Insurance.
A withdrawal of $12,000 by Brian Phillips, owner of the business, was recorded as a debit to Wages Expense and a credit to Cash.

Journalize the entries to correct the errors. For part a, first reverse the original entry and then make the correct entry.

a.	Prepaid Insurance
	Insurance Expense
	Prepaid Insurance
	Cash
b.	Brian Phillips, Drawing
	Wages Expense

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