Ivanhoe Company discovered the following errors made in January 2022. 1. A payment of Salaries and Wages Expense of $890 was debited to Equipment and credited to Cash, both for $890. 2. A collection of $7,400 from a client on account was debited to Cash $740 and credited to Service Revenue $740. 3. The purchase of equipment on account for $460 was debited to Equipment $640 and credited to Accounts Payable $640. Correct the errors without reversing the incorrect entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation 1. Salarles and Wages Expense Equipment 2. Cash 3. Service Revenue Accounts Receivable Debit 890 740 180 Credit 890 7400 180
Ivanhoe Company discovered the following errors made in January 2022. 1. A payment of Salaries and Wages Expense of $890 was debited to Equipment and credited to Cash, both for $890. 2. A collection of $7,400 from a client on account was debited to Cash $740 and credited to Service Revenue $740. 3. The purchase of equipment on account for $460 was debited to Equipment $640 and credited to Accounts Payable $640. Correct the errors without reversing the incorrect entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation 1. Salarles and Wages Expense Equipment 2. Cash 3. Service Revenue Accounts Receivable Debit 890 740 180 Credit 890 7400 180
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter2: Analyzing Transactions
Section: Chapter Questions
Problem 5PB: Tech Support Services has the following unadjusted trial balance as of January 31, 2019: The debit...
Related questions
Question
![Ivanhoe Company discovered the following errors made in January 2022.
1.
A payment of Salaries and Wages Expense of $890 was debited to Equipment and credited to Cash, both for $890.
2.
A collection of $7,400 from a client on account was debited to Cash $740 and credited to Service Revenue $740.
3.
The purchase of equipment on account for $460 was debited to Equipment $640 and credited to Accounts Payable $640.
Correct the errors without reversing the incorrect entry. (Credit account titles are automatically indented when amount is entered. Do
not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
No. Account Titles and Explanation
1.
Salarles and Wages Expense
Equipment
2.
Cash
3.
Service Revenue
Accounts Receivable
Debit
890
740
180
Credit
890
7400
180](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb2975bfe-ee86-4076-8d61-d41efc0894c5%2F8abfb9ad-2114-4866-9ad7-3baf3d9e2c72%2F198w5ah_processed.png&w=3840&q=75)
Transcribed Image Text:Ivanhoe Company discovered the following errors made in January 2022.
1.
A payment of Salaries and Wages Expense of $890 was debited to Equipment and credited to Cash, both for $890.
2.
A collection of $7,400 from a client on account was debited to Cash $740 and credited to Service Revenue $740.
3.
The purchase of equipment on account for $460 was debited to Equipment $640 and credited to Accounts Payable $640.
Correct the errors without reversing the incorrect entry. (Credit account titles are automatically indented when amount is entered. Do
not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
No. Account Titles and Explanation
1.
Salarles and Wages Expense
Equipment
2.
Cash
3.
Service Revenue
Accounts Receivable
Debit
890
740
180
Credit
890
7400
180
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
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 with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337272124/9781337272124_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781305088436/9781305088436_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337272124/9781337272124_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
![Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781305088436/9781305088436_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning