Hixon Ltd. (Hixon) has been having problems with its bookkeeper. Recently, errors have been observed in the bookkeeper’s work. Examine each of the following items and make any journal entry necessary to correct the entries originally made. This question can also be answered using an accounting equation spreadsheet.
a. Hixon took delivery of $15,000 inventory. The bookkeeper debited the cost of sales and credited accounts payable.
b. Hixon sold shares to investors for $200,000. The bookkeeper debited cash and credited revenue for $200,000.
c. Hixon purchased four computers for $10,000. The bookkeeper debited computer expense and credited cash for $10,000.
d. Hixon received a $3,000 payment from a customer for goods previously delivered.
The bookkeeper debited cash and credited revenue.

  • CreatedFebruary 26, 2015
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