What are the correcting entries to adjust the below incorrect records? In the closing entries of the Income Statement, the insurance expense was recorded $1350 instead of $1530. A collection of $3,000 from a client on account was debited to Cash $300 and credited to Service Revenue $300. A collection of $3,000 from a client on account was debited to Cash $300 and credited to Service Revenue $300.Answer 1Choose...Dr Insurance Expense $180 - Cr Income Summary $180Dr Insurance Expense $1530 - Cr Income Summary $180 & Cr Insurance Expense $1350Dr Service Revenue $300 - Dr Cash $2700 - Cr Accounts Receivable $3000Dr Income Summary $3000 - Cr Owner’s Capital $3000Dr Income Summary $180 - Cr Insurance Expense $180In the closing entries of the Income Statement, the insurance expense was recorded $1350 instead of $1530.

Adjusting entries It is made at the end of the accounting period to adjust the wrong entry that were…

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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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What are the correcting entries to adjust the below incorrect records?

In the closing entries of the Income Statement, the insurance expense was recorded $1350 instead of $1530.
A collection of $3,000 from a client on account was debited to Cash $300 and credited to Service Revenue $300.

A collection of $3,000 from a client on account was debited to Cash $300 and credited to Service Revenue $300.	Answer 1Choose...Dr Insurance Expense $180 - Cr Income Summary $180Dr Insurance Expense $1530 - Cr Income Summary $180 & Cr Insurance Expense $1350Dr Service Revenue $300 - Dr Cash $2700 - Cr Accounts Receivable $3000Dr Income Summary $3000 - Cr Owner’s Capital $3000Dr Income Summary $180 - Cr Insurance Expense $180
In the closing entries of the Income Statement, the insurance expense was recorded $1350 instead of $1530.

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