Remington Company discovered the following errors made in January 2021: 1. 2. 3. 4. A payment of salaries and wages of $1,000 was debited to Equipment and credited to Cash, both for $1,000. Remington recorded $200 of depreciation on this "equipment". A collection of $3,000 from a client on account was debited to Cash $300 and credited to Service Revenue $300. The purchase of supplies on account for $840 was debited to Supplies $480 and credited to Accounts Payable $480. The purchase of short-term investments for $1,500 cash was debited to Prepaid Rent and credited to Cash. At year end, $500 of the "prepaid rent" was recorded as rent expense. (a) Correct the errors by reversing the incorrect entry and preparing the correct entry. (b) Correct the errors without reversing the incorrect entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Remington Company discovered the following errors made in January 2021: 1. 2. 3. 4. A payment of salaries and wages of $1,000 was debited to Equipment and credited to Cash, both for $1,000. Remington recorded $200 of depreciation on this "equipment". A collection of $3,000 from a client on account was debited to Cash $300 and credited to Service Revenue $300. The purchase of supplies on account for $840 was debited to Supplies $480 and credited to Accounts Payable $480. The purchase of short-term investments for $1,500 cash was debited to Prepaid Rent and credited to Cash. At year end, $500 of the "prepaid rent" was recorded as rent expense. (a) Correct the errors by reversing the incorrect entry and preparing the correct entry. (b) Correct the errors without reversing the incorrect entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

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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