Review and study the following journal entries and determine which entries have errors. Date7915Nov. 10 Cash161718Accounts and ExplanationInventory ExpenseCashPurchased inventory for saleAccounts ReceivableService RevenuePerformed service on accountAccounts ReceivablePerformed service received cashSalaries ExpenseCashPaid employees for work performedUnearned RevenueCashReceived Cash for services to be performed next monthRefUnearned RevenueService RevenueRecord service revenue earned that was collected in advanceUtilities ExpenseAccounts PayablReceived electric bill to be paid next monthDebit3,9004,70020040015,000400175Credit3,9004,70020040015,000400175State if Corrector IncorrectCorrectionneeded):(if RequirementsReview and study the following journal entries and determine which entries have errors.All transactions are regular daily transactions (no adjusting entries).When looking for errors ask yourself does that transaction make sense?Once you discover an error, state how you would correct it.DateNov. 1 CashTruck2345Accounts and ExplanationService RevenueOwner Contributed cash and truck to businessPrepaid RentCashPaid for 6 months of rent in advanceInsurance ExpenseCashPaid for 1 year of insurance in advanceCleaning SuppliesAccounts PayablPurchased cleaning supplies for businessEquipmentAccounts PayablPurchased equipment on accountRefDebit15,0003,0004,0004,8003201,500Credit18,0004,0004,8003201,500State if Corrector IncorrectCorrection(if needed):

Journal Entries - Journal Entries are the records of the transactions entered into by the company…

Date 7 9 15 Nov. 10 Cash 16 17 18 Accounts and Explanation Inventory Expense Cash Purchased inventory for sale Accounts Receivable Service Revenue Performed service on account Accounts Receivable Performed service received cash Salaries Expense Cash Paid employees for work performed Unearned Revenue Cash Received Cash for services to be performed next month Ref Unearned Revenue Service Revenue Record service revenue earned that was collected in advance Utilities Expense Accounts Payabl Received electric bill to be paid next month Debit 3,900 4,700 200 400 15,000 400 175 Credit 3,900 4,700 200 400 15,000 400 175 State if Correct or Incorrect Correction needed): (if

Date 7 9 15 Nov. 10 Cash 16 17 18 Accounts and Explanation Inventory Expense Cash Purchased inventory for sale Accounts Receivable Service Revenue Performed service on account Accounts Receivable Performed service received cash Salaries Expense Cash Paid employees for work performed Unearned Revenue Cash Received Cash for services to be performed next month Ref Unearned Revenue Service Revenue Record service revenue earned that was collected in advance Utilities Expense Accounts Payabl Received electric bill to be paid next month Debit 3,900 4,700 200 400 15,000 400 175 Credit 3,900 4,700 200 400 15,000 400 175 State if Correct or Incorrect Correction needed): (if

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bad Debts

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.

Accounts Receivable

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.

Question

Review and study the following journal entries and determine which entries have errors.

Date
7
9
15
Nov. 10 Cash
16
17
18
Accounts and Explanation
Inventory Expense
Cash
Purchased inventory for sale
Accounts Receivable
Service Revenue
Performed service on account
Accounts Receivable
Performed service received cash
Salaries Expense
Cash
Paid employees for work performed
Unearned Revenue
Cash
Received Cash for services to be performed next month
Ref
Unearned Revenue
Service Revenue
Record service revenue earned that was collected in advance
Utilities Expense
Accounts Payabl
Received electric bill to be paid next month
Debit
3,900
4,700
200
400
15,000
400
175
Credit
3,900
4,700
200
400
15,000
400
175
State if Correct
or Incorrect
Correction
needed):
(if

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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