E4.13 (LO 3), AN Keenan Company has an inexperienced accountant. During the first 2 weeks on the job, the accountant made the following errors in journalizing transactions. All entries were posted as made. Instructions Prepare the correcting entries. 1. A payment on account of S840 to a creditor was debited to Accounts Payable S480 and credited to Cash S480. 2. A SS00 cash dividend was debited to Salaries and Wages Expense $500 and credited to Cash $500.

E4.13 (LO 3), AN Keenan Company has an inexperienced accountant. During the first 2 weeks on the job, the accountant made the following errors in journalizing transactions. All entries were posted as made. Instructions Prepare the correcting entries. 1. A payment on account of S840 to a creditor was debited to Accounts Payable S480 and credited to Cash S480. 2. A SS00 cash dividend was debited to Salaries and Wages Expense $500 and credited to Cash $500.

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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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.
1. The following entry was made to record the purchase of $700 in supplies on account: 142 Supplies Cash 101 2. The following entry was made to record the payment of $450 in wages: Rent Expense Cash 3. The following entry was made to record a $400 payment to a supplier on account: Supplies 142 200 Cash 101 1 2 3 4 2 5 DATE 6 7 3. 8 Required: Assuming that all entries have been posted, prepare correcting entries for each of the errors. If an amount box does not require an entry, leave it blank. Page: 9 521 101 10 700 450 700 450 200 ACCOUNT TITLE To correct error in which a purchase of supplies on account was credited to Cash To correct error in which a payment of wages was debited to Rent Expense To correct error in which a $400 payment on account was recorded as a $200 cash purchase of supplies DOC. POST. NO. REF. DEBIT CREDIT 1 IN M+S 6 7 8 9 10
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The unadjusted balance at the end of the month of the Branch Current is P567,980. The following information is provided to you. (see image below) Compute for the unadjusted balance of the Home Office Current account.
4. At the year-end of T Down & Co, an imbalance in the trial balance was revealed which resulted in the creation of a асcount with credit balance of $1,040. suspense Investigations revealed the following errors. a. A sale of goods on credit for $1,000 had been omitted from the sales account. a b. Delivery and installation costs of $240 on a new item of plant had been recorded as a revenue expense. c. Cash discount of $150 on paying a supplier, JW, had been taken, even though the payment was made outside the time limit. d. Inventory of stationery at the end of the period of $240 had been ignored. e. A purchase of raw materials of $350 had been recorded in the purchases account as $850. f. The purchase returns day book included a sales credit note for $230 which had been entered correctly in the account of the customer concerned, but included with purchase returns in the nominal ledger. Required (a) Prepare journal entries to correct each of the above errors. Narratives are not required.…
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Swaggy Steve's Clothing Company just completed their fiscal year ending August 31, 2019. The company's controller, when reviewing the trial balance, has discovered that the following four errors were made: 1. Swaggy recorded a $400 purchase of supplies on account by debiting Accounts Payable and crediting Supplies. 2. A cash receipt of $1,800 received from a customer as payment on their account was debited to cash and credited to sales revenue. 3. Swaggy recorded the payment of $750 in salaries expense as $570 (the correct accounts were debited and credited). 4. A payment of $1,200 for October's rent was debited to rent expense. Required: A. Using the space provided below, indicate how each element of the basic accounting equation is affected by the error by writing the amount and whether it is overstated (higher than what it is supposed to be) or understated (lower than what it is supposed to be), e.g., if the error caused assets to be overstated by $100 write "$100 Overstated" under…
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Quantum Solutions Company, a computer consulting firm, has decided to write off the $33,550 balance of an account owed by a customer, Alliance Inc. Required: On March 1, journalize the entry to record the write-off, assuming that (a) the direct write-off method is used and (b) the allowance method is used. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS Quantum Solutions Company General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable-Alliance Inc. 129 Allowance for Doubtful Accounts 131 Interest Receivable 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215…
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