Recife Company has an inexperienced accountant. During the first 2 weeks on the job, the accountant made

Question:

Recife Company has an inexperienced accountant. During the first 2 weeks on the job, the accountant made the following errors in journalizing transactions. All entries were posted as made.
1. A payment on account of R$630 to a creditor was debited to Accounts Payable R$360 and credited to Cash R$360.
2. The purchase of supplies on account for R$560 was debited to Equipment R$56 and credited to Accounts Payable R$56,
3. A R$400 cash dividend was debited to Salaries Expense R$400 and credited to Cash R$400.

Instructions
Prepare the correcting entries.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For  book-img-for-question

Financial accounting

ISBN: 978-1118285909

IFRS Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel

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