Pharoah Company discovered the following errors made in January 2020.1. A payment of Salaries and Wages Expense of $310 was debited to Equipment and credited to Cash, both for $310.2. A collection of $7,900 from a client on account was debited to Cash $790 and credited to Service Revenue $790.3. The purchase of equipment on account for $480 was debited to Equipment $720 and credited to Acc Correct the errors by reversing the incorrect entry and preparing the correct entry. (Credit account titles are automaticallyindented when amount is entered. Do not indent manually.)No. Account Titles and ExplanationDebitCredit1.(To reverse the incorrect entry)(To record the correct entry)2.(To reverse the incorrect entry)(To record the correct entry)3.(To reverse the incorrect entry)

A journal entry is used to record day-to-day transactions of the business by debiting and crediting…

Answered: Pharoah Company discovered the…

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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Pharoah Company discovered the following errors made in January 2020.

1.		A payment of Salaries and Wages Expense of $310 was debited to Equipment and credited to Cash, both for $310.
2.		A collection of $7,900 from a client on account was debited to Cash $790 and credited to Service Revenue $790.
3.		The purchase of equipment on account for $480 was debited to Equipment $720 and credited to Acc

Correct the errors by reversing the incorrect entry and preparing the correct entry. (Credit account titles are automatically
indented when amount is entered. Do not indent manually.)
No. Account Titles and Explanation
Debit
Credit
1.
(To reverse the incorrect entry)
(To record the correct entry)
2.
(To reverse the incorrect entry)
(To record the correct entry)
3.
(To reverse the incorrect entry)

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