Explanation Correcting entry: When an incorrect entry is journalized and posted to wrong account it must be corrected using the proper entry. As a result, while there is an occurrence of error the correcting entry is required to be made. Rules of Debit and Credit: Following rules are followed for debiting and crediting different accounts while they occur in business transactions: Ø Debit , all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities . Ø Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses. Prepare the correcting entry for the payment of $500 cash for rent expense. Date Accounts title and explanation Post. Ref...

23rd Edition

ISBN: 9781337794756

Author: HEINTZ, James A.

Publisher: Cengage Learning,

See similar textbooks

Concept explainers

The Effect Of Prepaid Taxes On Assets And Liabilities

Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can resu…

Final Accounts

Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.

Ledger Posting

A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the a…

Trial Balance and Final Accounts

In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately…

Adjustment Entries

At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial repor…

Videos

Question

Chapter 4, Problem 4CE

To determine

Prepare the correcting entry for the given transaction.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 4, Problem 3CE

Chapter 4, Problem 1RQ

Students have asked these similar questions

Correct answer

During 20x2 Creswell Corporation sold $5,500 of inventory on credit. The company's beginning and ending accounts receivable balances were $30,000 and $32,500, respectively. How much cash did Creswell Corporation collect on the account? If the ending accounts receivable had been $27,000, how much cash would Creswell Corporation have collected?

financial accounting

Chapter 4 Solutions

College Accounting, Chapters 1-27

Ch. 4 - Source documents serve as historical evidence of...Ch. 4 - The chart of accounts lists capital accounts...Ch. 4 - No entries are made in the Posting Reference...Ch. 4 - When entering the credit item in a general...Ch. 4 - When an incorrect entry has been journalized and...Ch. 4 - Prob. 1MC Ch. 4 - A revenue account will begin with the number...Ch. 4 - To purchase an asset such as office equipment on...Ch. 4 - When fees are earned and the customer promises to...Ch. 4 - When the correct numbers are used but are in the...

Ch. 4 - Prob. 1CE Ch. 4 - Prob. 2CE Ch. 4 - Prob. 3CE Ch. 4 - Prob. 4CE Ch. 4 - Trace the flow of accounting information through...Ch. 4 - Name a source document that provides information...Ch. 4 - Prob. 3RQ Ch. 4 - Prob. 4RQ Ch. 4 - Where is the first formal accounting record of a...Ch. 4 - Describe the four steps required to journalize a...Ch. 4 - In what order are the accounts customarily placed...Ch. 4 - Explain the primary advantage of a general ledger...Ch. 4 - Explain the five steps required when posting the...Ch. 4 - Prob. 10RQ Ch. 4 - Explain why the ledger can still contain errors...Ch. 4 - Prob. 12RQ Ch. 4 - What is a transposition error?Ch. 4 - What is a correcting entry?Ch. 4 - Prob. 1SEA Ch. 4 - GENERAL JOURNAL ENTRIES For each of the following...Ch. 4 - GENERAL LEDGER ACCOUNTS Set up T accounts for each...Ch. 4 - GENERAL JOURNAL ENTRIES Diane Bernick has opened...Ch. 4 - GENERAL LEDGER ACCOUNTS; TRIAL BALANCE Set up...Ch. 4 - FINANCIAL STATEMENTS From the information in...Ch. 4 - Prob. 7SEA Ch. 4 - FINDING AND CORRECTING ERRORS On May 25, after the...Ch. 4 - SERIES A PROBLEMS JOURNALIZING AND POSTING...Ch. 4 - JOURNALIZING AND POSTING TRANSACTIONS Jim Andrews...Ch. 4 - CORRECTING ERRORS Assuming that all entries have...Ch. 4 - Prob. 1SEB Ch. 4 - GENERAL JOURNAL ENTRIES For each of the following...Ch. 4 - GENERAL LEDGER ACCOUNTS Set up T accounts for each...Ch. 4 - GENERAL JOURNAL ENTRIES Sengel Moon opened The...Ch. 4 - GENERAL LEDGER ACCOUNTS; TRIAL BALANCE Set up...Ch. 4 - FINANCIAL STATEMENTS From the information in...Ch. 4 - Prob. 7SEB Ch. 4 - FINDING AND CORRECTING ERRORS On April 25, after...Ch. 4 - JOURNALIZING AND POSTING TRANSACTIONS Benito...Ch. 4 - Prob. 10SPB Ch. 4 - CORRECTING ERRORS Assuming that all entries have...Ch. 4 - MANAGING YOUR WRITING You are a public accountant...Ch. 4 - MASTERY PROBLEM Barry Bird opened the Barry Bird...Ch. 4 - CHALLENGE PROBLEM Journal entries and a trial...

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Prepare the correcting entry for the given transaction.

Solution Summary: The author explains the rules of debiting and crediting different accounts while they occur in business transactions.

Concept explainers

Videos

Prepare the correcting entry for the given transaction.

Want to see the full answer?

Chapter 4 Solutions