Current Attempt in Progress Remington Company discovered the following errors made in January 2021: 1. A payment of salaries and wages of $1,000 was debited to Equipment and credited to Cash, both for $1,000. Remington recorded $200 of depreciation on this "equipment". 2. A collection of $3,000 from a client on account was debited to Cash $300 and credited to Service Revenue $300. 3. 4. The purchase of supplies on account for $840 was debited to Supplies $480 and credited to Accounts Payable $480. The purchase of short-term investments for $1,500 cash was debited to Prepaid Rent and credited to Cash. At year end, $500 of the "prepaid rent" was recorded as rent expense.

Current Attempt in Progress Remington Company discovered the following errors made in January 2021: 1. A payment of salaries and wages of $1,000 was debited to Equipment and credited to Cash, both for $1,000. Remington recorded $200 of depreciation on this "equipment". 2. A collection of $3,000 from a client on account was debited to Cash $300 and credited to Service Revenue $300. 3. 4. The purchase of supplies on account for $840 was debited to Supplies $480 and credited to Accounts Payable $480. The purchase of short-term investments for $1,500 cash was debited to Prepaid Rent and credited to Cash. At year end, $500 of the "prepaid rent" was recorded as rent expense.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter14: Statement Of Cash Flows (cashflow)

Section: Chapter Questions

Problem 4R: Suppose that an audit of Prime Sports Gear encountered the following two errors: a. Inventory...

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