Exercise Prepare a correcting entry (or entries), with explanations, for each of the following account- ing errors: a. Debited Supplies and credited Accounts Payable for a $9,000 purchase of office equip- ment on account. b. Accrued interest revenue of $3,000 by a debit to Accounts Receivable and a credit to Interest Revenue. c. Adjusted prepaid rent by debiting Prepaid Rent and crediting Rent Expense for $4,000. This adjusting entry should have debited Rent Expense and credited Prepaid Rent for $4,000. d. Debited Salary Expense and credited Accounts Payable to accrue salary expense of $12,000. e. Recorded the earning of $7,800 service revenue collected in advance by debiting Accounts Receivable and crediting Service Revenue.
Exercise Prepare a correcting entry (or entries), with explanations, for each of the following account- ing errors: a. Debited Supplies and credited Accounts Payable for a $9,000 purchase of office equip- ment on account. b. Accrued interest revenue of $3,000 by a debit to Accounts Receivable and a credit to Interest Revenue. c. Adjusted prepaid rent by debiting Prepaid Rent and crediting Rent Expense for $4,000. This adjusting entry should have debited Rent Expense and credited Prepaid Rent for $4,000. d. Debited Salary Expense and credited Accounts Payable to accrue salary expense of $12,000. e. Recorded the earning of $7,800 service revenue collected in advance by debiting Accounts Receivable and crediting Service Revenue.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
don't give answer in image format
Transcribed Image Text:Exercise 4-10
Prepare a correcting entry (or entries), with explanations, for each of the following account-
ing errors:
a. Debited Supplies and credited Accounts Payable for a $9,000 purchase of office equip-
ment on account.
b. Accrued interest revenue of $3,000 by a debit to Accounts Receivable and a credit to
Interest Revenue.
c. Adjusted prepaid rent by debiting Prepaid Rent and crediting Rent Expense for $4,000.
This adjusting entry should have debited Rent Expense and credited Prepaid Rent for
$4,000.
d. Debited Salary Expense and credited Accounts Payable to accrue salary expense of
$12,000.
e. Recorded the earning of $7,800 service revenue collected in advance by debiting
Accounts Receivable and crediting Service Revenue.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education