(For items 1 and 2). Read and analyze the following transactions taken from the book of XYZ Services for January 2020. Refer to the given journal entries. Analyze and look for possible errors in the recorded entries. Answer the questions that follows. Xyrelle Yunice Zapanta, a local CPA, completed the following transactions during January of the current year. Jan 1. She opened the business with the name XYZ Services and invested the following: Cash P200,000; Office Equipment P75,000 and Furniture and Fixtures P50,000 Jan 17. Billed Samuel Perez P 15,000 for services rendered. Jan 22. Paid Golden Buzzer Co. P6,000 for the office supplies purchased on Jan 14. Jan 23. Rendered services to the customers on account for P 100,000 with 30% down payment and balance on account Jan 28. Paid the light and water bill, P 1200. The following account titles were used: Cash Accounts Receivable Office Supplies Office Equipment Furniture and Fixtures Accounts Payable Notes Payable XYZ, Capital XYZ, Drawings Fees Earned Utilities Expense Shop Equipment Miscellaneous Expense XYZ Services General Journal Page 1 20 Particulars P.R. Debit Credit Jan Cash 200,000 Shop Equipment 75,000 Furniture and Fixtures 50,000 XYZ, Capital To record investment of the owner 75,000 17 Accounts Receivable 15,000 Cash 15,000 To record service rendered on account 22 Accounts Payable 6,000 Cash 6,000 To record paid accounts for office supplies 23 Cash Accounts Payable 70,000 30,000 Fees Earned To record purchase of computer 100,000 28 Cash 1,200 Miscellaneous Expense To record collection of accounts receivable 1,200
(For items 1 and 2). Read and analyze the following transactions taken from the book of XYZ Services for January 2020. Refer to the given journal entries. Analyze and look for possible errors in the recorded entries. Answer the questions that follows. Xyrelle Yunice Zapanta, a local CPA, completed the following transactions during January of the current year. Jan 1. She opened the business with the name XYZ Services and invested the following: Cash P200,000; Office Equipment P75,000 and Furniture and Fixtures P50,000 Jan 17. Billed Samuel Perez P 15,000 for services rendered. Jan 22. Paid Golden Buzzer Co. P6,000 for the office supplies purchased on Jan 14. Jan 23. Rendered services to the customers on account for P 100,000 with 30% down payment and balance on account Jan 28. Paid the light and water bill, P 1200. The following account titles were used: Cash Accounts Receivable Office Supplies Office Equipment Furniture and Fixtures Accounts Payable Notes Payable XYZ, Capital XYZ, Drawings Fees Earned Utilities Expense Shop Equipment Miscellaneous Expense XYZ Services General Journal Page 1 20 Particulars P.R. Debit Credit Jan Cash 200,000 Shop Equipment 75,000 Furniture and Fixtures 50,000 XYZ, Capital To record investment of the owner 75,000 17 Accounts Receivable 15,000 Cash 15,000 To record service rendered on account 22 Accounts Payable 6,000 Cash 6,000 To record paid accounts for office supplies 23 Cash Accounts Payable 70,000 30,000 Fees Earned To record purchase of computer 100,000 28 Cash 1,200 Miscellaneous Expense To record collection of accounts receivable 1,200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 1: What are the correct and the wrong entries in the given journal? Write a brief explanation for the wrong entries..
The correct entries are journal entries dated:
The wrong entries are journal entries dated:
Transcribed Image Text:I. (For items 1 and 2). Read and analyze the following transactions taken from the book of XYZ Services for January 2020. Refer to the given
journal entries. Analyze and look for possible errors in the recorded entries. Answer the questions that follows.
Xyrelle Yunice Zapanta, a local CPA, completed the following transactions during January of the current year.
Jan 1. She opened the business with the name XYZ Services and invested the following: Cash P200,000; Office Equipment P75,000 and
Furniture and Fixtures P50,000
Jan 17. Billed Samuel Perez P 15,000 for services rendered.
Jan 22. Paid Golden Buzzer Co. P6,000 for the office supplies purchased on Jan 14.
Jan 23. Rendered services to the customers on account for P 100,000 with 30% down payment and balance on account
Jan 28. Paid the light and water bill, P 1200.
The following account titles were used:
Cash
Accounts Receivable
Office Supplies
Office Equipment
Furniture and Fixtures
Accounts Payable
Notes Payable
XYZ, Capital
XYZ, Drawings
Fees Earned
Utilities Expense
Shop Equipment
Miscellaneous Expense
XYZ Services
General Journal
Page 1
Credit
20
Particulars
P.R.
Debit
Jan
1
Cash
200,000
Shop Equipment
75,000
Furniture and Fixtures
XYZ, Capital
To record investment of the owner
50,000
75,000
17 Accounts Receivable
15,000
Cash
15,000
To record service rendered on account
22 Accounts Payable
6,000
Cash
6,000
To record paid accounts for office supplies
23 Cash
Accounts Payable
Fees Earned
To record purchase of computer
70,000
30,000
100,000
28 Cash
1,200
Miscellaneous Expense
To record collection of accounts receivable
1,200
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