Oriole Company discovered the following errors made in January 2020. 1. A payment of Salaries and Wages Expense of $460 was debited to Equipment and credited to Cash, both for $460. 2. A collection of $6,000 from a client on account was debited to Cash $600 and credited to Service Revenue $600. 3. The purchase of equipment on account for $190 was debited to Equipment $720 and credited to Accounts Payable $720.
Oriole Company discovered the following errors made in January 2020. 1. A payment of Salaries and Wages Expense of $460 was debited to Equipment and credited to Cash, both for $460. 2. A collection of $6,000 from a client on account was debited to Cash $600 and credited to Service Revenue $600. 3. The purchase of equipment on account for $190 was debited to Equipment $720 and credited to Accounts Payable $720.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter4: Completing The Accounting Cycle
Section: Chapter Questions
Problem 3PB: The unadjusted trial balance of La Mesa Laundry at August 31, 2016, the end of the fiscal year,...
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Oriole Company discovered the following errors made in January 2020.
| 1. | A payment of Salaries and Wages Expense of $460 was debited to Equipment and credited to Cash, both for $460. | |
| 2. | A collection of $6,000 from a client on account was debited to Cash $600 and credited to Service Revenue $600. | |
| 3. | The purchase of equipment on account for $190 was debited to Equipment $720 and credited to Accounts Payable $720. |
(a)
Correct the errors by reversing the incorrect entry and preparing the correct entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
|
No.
|
Account Titles and Explanation
|
Debit
|
Credit
|
|---|---|---|---|
| 1. |
enter an account title to reverse the incorrect entry
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to reverse the incorrect entry
|
enter a debit amount
|
enter a credit amount
|
|
|
(To reverse the incorrect entry)
|
|||
|
enter an account title to record the correct entry
|
enter a debit amount
|
enter a credit amount
|
|
|
enter an account title to record the correct entry
|
enter a debit amount
|
enter a credit amount
|
|
|
(To record the correct entry)
|
|||
| 2. |
enter an account title to reverse the incorrect entry
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to reverse the incorrect entry
|
enter a debit amount
|
enter a credit amount
|
|
|
(To reverse the incorrect entry)
|
|||
|
enter an account title to record the correct entry
|
enter a debit amount
|
enter a credit amount
|
|
|
enter an account title to record the correct entry
|
enter a debit amount
|
enter a credit amount
|
|
|
(To record the correct entry)
|
|||
| 3. |
enter an account title to reverse the incorrect entry
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to reverse the incorrect entry
|
enter a debit amount
|
enter a credit amount
|
|
|
(To reverse the incorrect entry)
|
|||
|
enter an account title to record the correct entry
|
enter a debit amount
|
enter a credit amount
|
|
|
enter an account title to record the correct entry
|
enter a debit amount
|
enter a credit amount
|
|
|
(To record the correct entry)
|
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