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Accounting (Text Only)

26th Edition
Carl Warren + 2 others
ISBN: 9781285743615

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BuyFindarrow_forward

Accounting (Text Only)

26th Edition
Carl Warren + 2 others
ISBN: 9781285743615
Textbook Problem
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Entries to correct errors

The following errors took place in journalizing and posting transactions:

a.    Cash of $8,800 received on account was recorded as a debit to Fees Earned and a credit to Cash.

b.    A $1,760 purchase of supplies for cash was recorded as a debit to Supplies Expense and a credit to Accounts Payable.

Journalize the entries to correct the errors. Omit explanations

(a)

To determine

Errors not affecting trial balance:

An error is a mistake committed in the process of book-keeping or in accounting.  In some cases, errors may occur but, they will not affect the totals of the trial balance. Such an error can be found while preparing the trial balance or would be indicated by the unusual account balance. For Example, land account having a credit balance. If such errors have already been journalized, and posted to the ledger, then they should be corrected by preparing a correcting journal entry.

To journalize: The entries to correct the errors.

Explanation

  • In the first entry, the incorrect entry of debit to fees earned account, and credit to cash account are reversed.
  • In the second entry, the correct entry is recorded...

(b)

To determine

To journalize: The entries to correct the errors.

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