Sandhill Company discovered the following errors made in January 2020. 1. A payment of Salaries and Wages Expense of $360 was debited to Equipment and credited to Cash, both for $360. 2. A collection of $1,100 from a client on account was debited to Cash $110 and credited to Service Revenue $110. 3. The purchase of equipment on account for $270 was debited to Equipment $800 and credited to Accounts Payable $800. (a) 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. enter an account title to reverse the incorrect entry enter a debit amount enter a credit amount enter an account title to reverse the incorrect entry enter a debit amount enter a credit amount (To reverse the incorrect entry) enter an account title to record the correct entry enter a debit amount enter a credit amount enter an account title to record the correct entry enter a debit amount enter a credit amount (To record the correct entry) 2. enter an account title to reverse the incorrect entry enter a debit amount enter a credit amount enter an account title to reverse the incorrect entry enter a debit amount enter a credit amount (To reverse the incorrect entry) enter an account title to record the correct entry enter a debit amount enter a credit amount enter an account title to record the correct entry enter a debit amount enter a credit amount (To record the correct entry) 3. enter an account title to reverse the incorrect entry enter a debit amount enter a credit amount enter an account title to reverse the incorrect entry enter a debit amount enter a credit amount (To reverse the incorrect entry) enter an account title to record the correct entry enter a debit amount enter a credit amount enter an account title to record the correct entry enter a debit amount enter a credit amount (To record the correct entry)

Sandhill Company discovered the following errors made in January 2020. 1. A payment of Salaries and Wages Expense of $360 was debited to Equipment and credited to Cash, both for $360. 2. A collection of $1,100 from a client on account was debited to Cash $110 and credited to Service Revenue $110. 3. The purchase of equipment on account for $270 was debited to Equipment $800 and credited to Accounts Payable $800. (a) 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. enter an account title to reverse the incorrect entry enter a debit amount enter a credit amount enter an account title to reverse the incorrect entry enter a debit amount enter a credit amount (To reverse the incorrect entry) enter an account title to record the correct entry enter a debit amount enter a credit amount enter an account title to record the correct entry enter a debit amount enter a credit amount (To record the correct entry) 2. enter an account title to reverse the incorrect entry enter a debit amount enter a credit amount enter an account title to reverse the incorrect entry enter a debit amount enter a credit amount (To reverse the incorrect entry) enter an account title to record the correct entry enter a debit amount enter a credit amount enter an account title to record the correct entry enter a debit amount enter a credit amount (To record the correct entry) 3. enter an account title to reverse the incorrect entry enter a debit amount enter a credit amount enter an account title to reverse the incorrect entry enter a debit amount enter a credit amount (To reverse the incorrect entry) enter an account title to record the correct entry enter a debit amount enter a credit amount enter an account title to record the correct entry enter a debit amount enter a credit amount (To record the correct entry)

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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(a)

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.	enter an account title to reverse the incorrect entry	enter a debit amount	enter a credit amount
	enter an account title to reverse the incorrect entry	enter a debit amount	enter a credit amount
	(To reverse the incorrect entry)
	enter an account title to record the correct entry	enter a debit amount	enter a credit amount
	enter an account title to record the correct entry	enter a debit amount	enter a credit amount
	(To record the correct entry)
2.	enter an account title to reverse the incorrect entry	enter a debit amount	enter a credit amount
	enter an account title to reverse the incorrect entry	enter a debit amount	enter a credit amount
	(To reverse the incorrect entry)
	enter an account title to record the correct entry	enter a debit amount	enter a credit amount
	enter an account title to record the correct entry	enter a debit amount	enter a credit amount
	(To record the correct entry)
3.	enter an account title to reverse the incorrect entry	enter a debit amount	enter a credit amount
	enter an account title to reverse the incorrect entry	enter a debit amount	enter a credit amount
	(To reverse the incorrect entry)
	enter an account title to record the correct entry	enter a debit amount	enter a credit amount
	enter an account title to record the correct entry	enter a debit amount	enter a credit amount
	(To record the correct entry)

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1.		A payment of Salaries and Wages Expense of $360 was debited to Equipment and credited to Cash, both for $360.
2.		A collection of $1,100 from a client on account was debited to Cash $110 and credited to Service Revenue $110.
3.		The purchase of equipment on account for $270 was debited to Equipment $800 and credited to Accounts Payable $800.