The following errors took place in journalizing and posting transactions: A. insurance of $4,400 paid for the current year was recorded as a debit to insurance expense and a credit to prepared insurance. b. a withdrawal of 16,000 by Brian phillips, owner of the business, was recorded as a debit to wage expense and a credit to cash. journalize the entries to correct the errors. For part a, first reverse the original entry and then make the correct entry.
The following errors took place in journalizing and posting transactions: A. insurance of $4,400 paid for the current year was recorded as a debit to insurance expense and a credit to prepared insurance. b. a withdrawal of 16,000 by Brian phillips, owner of the business, was recorded as a debit to wage expense and a credit to cash. journalize the entries to correct the errors. For part a, first reverse the original entry and then make the correct entry.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following errors took place in journalizing and
A. insurance of $4,400 paid for the current year was recorded as a debit to insurance expense and a credit to prepared insurance.
b. a withdrawal of 16,000 by Brian phillips, owner of the business, was recorded as a debit to wage expense and a credit to cash.
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