Pina Colada Company has an inexperienced accountant. During the first months on the job, the accountant made the following errors in journalizing transactions. All entries were posted as made. 1. 2. 3. The purchase of supplies for $660 cash was debited to Equipment $210 and credited to Cash $210. A $510 dividend was debited to Salaries and Wages Expense $920 and credited to Cash $920. A payment on account of $920 to a creditor was debited to Accounts Payable $290 and credited to Cash $290.
Pina Colada Company has an inexperienced accountant. During the first months on the job, the accountant made the following errors in journalizing transactions. All entries were posted as made. 1. 2. 3. The purchase of supplies for $660 cash was debited to Equipment $210 and credited to Cash $210. A $510 dividend was debited to Salaries and Wages Expense $920 and credited to Cash $920. A payment on account of $920 to a creditor was debited to Accounts Payable $290 and credited to Cash $290.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Need help with the correcting entries with full working
Transcribed Image Text:Prepare the correcting entries. (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 0 for the amounts.)
No. Account Titles and Explanation
1.
2.
3.
Supplies
Equipment
Cash
Dividend
Salaries and Wages Expense
Cash
Accounts Payable
Cash
Debit
660
510
630
Credit
210
450
7
630
Transcribed Image Text:Pina Colada Company has an inexperienced accountant. During the first months on the job, the accountant made the following errors
in journalizing transactions. All entries were posted as made.
1.
2.
3.
The purchase of supplies for $660 cash was debited to Equipment $210 and credited to Cash $210.
A $510 dividend was debited to Salaries and Wages Expense $920 and credited to Cash $920.
A payment on account of $920 to a creditor was debited to Accounts Payable $290 and credited to Cash $290.
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