College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 4, Problem 8SEB
FINDING AND CORRECTING ERRORS On April 25, after the transactions had been posted, Mary Smith discovered the following entry contains an error. When her customer received services, Cash was debited, but the service was provided on account. Correct the error in the journal using a correcting entry.
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On March 1, it was discovered that the following errors took place in journalizing and posting transactions:
a.
The receipt of $8,400 for services rendered was recorded as a debit to Accounts Receivable and a credit to Fees Earned.
b.
The purchase of supplies of $2,500 on account was recorded as a debit to Office Equipment and a credit to Supplies.
Journalize the entries on March 1 to correct the errors. Use two entries to correct the error described in (b). (That is, record an entry to reverse the incorrect entry and a second entry to record the correct entry.) Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTS
General Ledger
ASSETS
11
Cash
12
Accounts Receivable
13
Supplies
14
Prepaid Insurance
15
Land
16
Office Equipment
17
Automobiles
LIABILITIES
21
Accounts Payable
22
Unearned Rent
23
Notes Payable
24
Salaries Payable
EQUITY
31
Common Stock
32
Retained…
On March 1, it was discovered that the following errors took place in journalizing and posting transactions:
a.
Rent expense of $3,220 paid for the current month was recorded as a debit to Miscellaneous Expense and a credit to Rent Expense.
b.
The payment of $5,080 from a customer on account was recorded as a debit to Cash and a credit to Accounts Payable.
Journalize the entries on March 1 to correct the errors. Use two entries to correct the error described in (a). (That is, record an entry to reverse the incorrect entry and a second entry to record the correct entry.) Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
Ms. Ameena is an Account Assistant of a Merchandise business in Oman. The business paid rent expense of OMR 1500. She was asked to record the transaction. But due to her busy schedule she forgot to write the entire transaction. The type of Error was committed by Ms. Ameena:
a.
Error of Transposition
b.
Error of Principle
c.
Error of Complete Omission
d.
Error of Partial Omission
Chapter 4 Solutions
College Accounting, Chapters 1-27
Ch. 4 - Source documents serve as historical evidence of...Ch. 4 - The chart of accounts lists capital accounts...Ch. 4 - No entries are made in the Posting Reference...Ch. 4 - When entering the credit item in a general...Ch. 4 - When an incorrect entry has been journalized and...Ch. 4 - Prob. 1MCCh. 4 - A revenue account will begin with the number...Ch. 4 - To purchase an asset such as office equipment on...Ch. 4 - When fees are earned and the customer promises to...Ch. 4 - When the correct numbers are used but are in the...
Ch. 4 - Prob. 1CECh. 4 - Prob. 2CECh. 4 - Prob. 3CECh. 4 - Prob. 4CECh. 4 - Trace the flow of accounting information through...Ch. 4 - Name a source document that provides information...Ch. 4 - Prob. 3RQCh. 4 - Prob. 4RQCh. 4 - Where is the first formal accounting record of a...Ch. 4 - Describe the four steps required to journalize a...Ch. 4 - In what order are the accounts customarily placed...Ch. 4 - Explain the primary advantage of a general ledger...Ch. 4 - Explain the five steps required when posting the...Ch. 4 - Prob. 10RQCh. 4 - Explain why the ledger can still contain errors...Ch. 4 - Prob. 12RQCh. 4 - What is a transposition error?Ch. 4 - What is a correcting entry?Ch. 4 - Prob. 1SEACh. 4 - GENERAL JOURNAL ENTRIES For each of the following...Ch. 4 - GENERAL LEDGER ACCOUNTS Set up T accounts for each...Ch. 4 - GENERAL JOURNAL ENTRIES Diane Bernick has opened...Ch. 4 - GENERAL LEDGER ACCOUNTS; TRIAL BALANCE Set up...Ch. 4 - FINANCIAL STATEMENTS From the information in...Ch. 4 - Prob. 7SEACh. 4 - FINDING AND CORRECTING ERRORS On May 25, after the...Ch. 4 - SERIES A PROBLEMS JOURNALIZING AND POSTING...Ch. 4 - JOURNALIZING AND POSTING TRANSACTIONS Jim Andrews...Ch. 4 - CORRECTING ERRORS Assuming that all entries have...Ch. 4 - Prob. 1SEBCh. 4 - GENERAL JOURNAL ENTRIES For each of the following...Ch. 4 - GENERAL LEDGER ACCOUNTS Set up T accounts for each...Ch. 4 - GENERAL JOURNAL ENTRIES Sengel Moon opened The...Ch. 4 - GENERAL LEDGER ACCOUNTS; TRIAL BALANCE Set up...Ch. 4 - FINANCIAL STATEMENTS From the information in...Ch. 4 - Prob. 7SEBCh. 4 - FINDING AND CORRECTING ERRORS On April 25, after...Ch. 4 - JOURNALIZING AND POSTING TRANSACTIONS Benito...Ch. 4 - Prob. 10SPBCh. 4 - CORRECTING ERRORS Assuming that all entries have...Ch. 4 - MANAGING YOUR WRITING You are a public accountant...Ch. 4 - MASTERY PROBLEM Barry Bird opened the Barry Bird...Ch. 4 - CHALLENGE PROBLEM Journal entries and a trial...
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- FINDING AND CORRECTING ERRORS On May 25, after the transactions had been posted, Joe Adams discovered that the following entry contains an error. The cash received represents a collection on account, rather than new service fees. Correct the error in the general journal using a correcting entry.arrow_forwardFINDING AND CORRECTING ERRORS Mary Smith purchased 350 worth of office equipment on account. The following entry was recorded on April 6. Find the error(s) and correct it (them) using the ruling method. On April 25, after the transactions had been posted, Smith discovered the following entry contains an error. When her customer received services, Cash was debited, but no cash was received. Correct the error in the journal using the correcting entry method.arrow_forwardFINDING AND CORRECTING ERRORS Joe Adams bought 500 worth of office supplies on account. The following entry was recorded on May 17. Find the error(s) and correct it (them) using the ruling method. On May 25, after the transactions had been posted, Adams discovered that the following entry contains an error. The cash received represents a collection on account, rather than new service fees. Correct the error in the general journal using the correcting entry method.arrow_forward
- The bookkeeper for Nevado Company has prepared the following trial balance: The bookkeeper has asked for your help. In examining the companys journal and ledger, you discover the following errors. Use this information to construct a corrected trial balance. a. The debits to the Cash account total 8,000, and the credits total 3,300. b. A 500 payment to a creditor was entered in the journal correctly but was not posted to the Accounts Payable account. c. The first two numbers in the balance of the Accounts Receivable account were transposed when the balance was copied from the ledger to the trial balance. d. The 1,500 amount withdrawn by the owner for personal use was debited to Miscellaneous Expense by mistakeit was correctly credited to Cash.arrow_forwardWhich of these transactions requires a credit entry to Revenue? A. received cash from services performed this month B. collected balance due from customers C. received cash from bank loan D. refunded a customer for a defective productarrow_forwardJournalize correcting entries for each of the following errors and include a brief explanation. a. A cash purchase of office equipment for 680 was journalized as a cash purchase of store equipment for 680. (Use the ruling method; assume that the entry has not been posted.) b. An entry for a 180 payment for office supplies was journalized as 810. (Use the ruling method; assume that the entry has not been posted.) c. A 620 payment for repairs was journalized and posted as a debit to Equipment instead of a debit to Repair Expense. (Use the correcting entry method to journalize the correction.) d. A 750 bill for vehicle insurance was received and immediately paid. It was journalized and posted as 660. (Use the correcting entry method to journalize the correction.)arrow_forward
- A trial balance: lists only revenue and expense accounts; lists all accounts and their balances. will help detect omitted journal entries. detects all errors that could be made during the journalizing or posting steps of the accounting cycle.arrow_forwardOn March 1, it was discovered that the following errors took place in journalizing and posting transactions: a. Rent Expense of $4,650 paid for the current month was recorded as a debit to Miscellaneous Expense and a credit to Rent Expense. b. The payment of $3,700 from a customer on account was recorded as a debit to Cash and a credit to Accounts Payable. Journalize the entries on March 1 to correct the errors. Use two entries to correct the error described in (a). (That is, record an entry to reverse the incorrect entry and a second entry to record the correct entry.) Refer to the Chart of Accounts for exact wording of account titles.arrow_forwardJinan Company, the following errors were discovered after the transactions had been journalized and posted. Instructions: Prepare the correcting entries without reversing the incorrect entry. A collection on account from a customer for $780 was recorded as a debit to Cash $780 and a credit to Service Revenue $780. The purchase of store supplies on account for $1,570 was recorded as a debit to Store Supplies $1,750 and a credit to Accounts Payable $1,750.arrow_forward
- Ms. Noor is an Account Assistant of a Merchandise business in Oman. The business paid monthly salaries to all employees of OMR 7000. Ms. Noor was asked to record the transaction. But due to her busy schedule she forgot to record the entire transaction. The type of Error was committed by Ms. Noor: a. Error of Principle b. Error of Transposition c. Error of Partial Omission d. Error Complete Omissionarrow_forwardThe following errors took place in journalizing and posting transactions: a ) A withdrawal of $5,000 by Saleem, owner of the business, was recorded as a debit to Office Expense and a credit to Cash. b) An accounts receivable payment for $7,800 was recorded as a debit to Cash and a credit to Fees Earned. Journalize the entries to correct the errors.arrow_forwardidentify which error will cause the trial balance to be out of balance A. a 260 cash salary payment posted as a 260 debit to cash and a 260 credit to salaries expense B. a 160 cash receipt from a customer in payment of her account posted as a 160 debit to cash and a 16 credit to accounts recievable C. a 105 cash receipt from a customer in payment of her account posted as a 105 debit to cash and a 105 credit to cash D. a 68 cash purchase of office supplies posted as a 68 debit to office equipment and a 68 credit to cash E. an 1100 prepayment from a customer for service to be rendered in the future was posted as 1100 debit to unearned revenure and an 1100 credit to casharrow_forward
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