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Home Team Corporation recently hired Bilal as its bookkeeper. Mr. Bilal is somewhat inexperience and has made numerous errors recording daily business transactions. Indicate the effects of the error described below on cach of the financial statement elements shown in the column headings. Use th following symbols: O for overstated; U for understated, and NE for no effect. Make a 3 Colum tabl and name as Error Transaction, Correct Debit Account and Correct Credit Account. Prepare Genera Entries with Correct Accounts.

Home Team Corporation recently hired Bilal as its bookkeeper. Mr. Bilal is somewhat inexperience and has made numerous errors recording daily business transactions. Indicate the effects of the error described below on cach of the financial statement elements shown in the column headings. Use th following symbols: O for overstated; U for understated, and NE for no effect. Make a 3 Colum tabl and name as Error Transaction, Correct Debit Account and Correct Credit Account. Prepare Genera Entries with Correct Accounts.

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Home Team Corporation recently hired Bilal as its bookkeeper. Mr. Bilal is somewhat inexperienced and has made numerous errors recording daily business transactions. Indicate the effects of the errors described below on each of the financial statement elements shown in the column headings. Use the following symbols: O for overstated; U for understated, and NE for no effect. Make a 3 Colum table and name as Error Transaction, Correct Debit Account and Correct Credit Account. Prepare General Entries with Correct Accounts. Total Liabilities Net Total Owners' Error Income Assets Equity Recorded the issuance of capital stock by debiting Capital Stock and crediting Service Revenue. Recorded the declaration and payment of a dividend by debiting Capital Stock and crediting Cash. Recorded the payment of an account payable by debiting Cash and crediting Rent Expense. Recorded the collection of an outstanding account receivable by debiting Cash and crediting Service Revenue. Recorded client billings on account by debiting Accounts Receivable and crediting Advertising Expense. Recorded the cash purchase of land by debiting Supplies Expense and crediting Notes Payable. Recorded the purchase of a building on account by debiting Cash and crediting Dividends Payable.
Transcribed Image Text:Home Team Corporation recently hired Bilal as its bookkeeper. Mr. Bilal is somewhat inexperienced and has made numerous errors recording daily business transactions. Indicate the effects of the errors described below on each of the financial statement elements shown in the column headings. Use the following symbols: O for overstated; U for understated, and NE for no effect. Make a 3 Colum table and name as Error Transaction, Correct Debit Account and Correct Credit Account. Prepare General Entries with Correct Accounts. Total Liabilities Net Total Owners' Error Income Assets Equity Recorded the issuance of capital stock by debiting Capital Stock and crediting Service Revenue. Recorded the declaration and payment of a dividend by debiting Capital Stock and crediting Cash. Recorded the payment of an account payable by debiting Cash and crediting Rent Expense. Recorded the collection of an outstanding account receivable by debiting Cash and crediting Service Revenue. Recorded client billings on account by debiting Accounts Receivable and crediting Advertising Expense. Recorded the cash purchase of land by debiting Supplies Expense and crediting Notes Payable. Recorded the purchase of a building on account by debiting Cash and crediting Dividends Payable.
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