All the journal entries shown below contain errors. The entries were prepared by an employee of New Zealand Corporation who does not have an adequate knowledge of accounting.

INSTRUCTIONS
Examine the journal entries carefully to locate the errors. Provide a brief written description of each error. Assume that Office Equipment and Office Supplies were recorded at the correct values.
Analyze: After the correcting journal entries have been posted, what effect do the corrections have on the reported assets of thecompany?

GENERAL JOURNAL PAGE POST AEF DATE DESCAIPTION DEBIT CAEDIT 1 2016 Jan. 1 Accounts Payable 100 00 Fees Income 100 008 Performed services on credit 2 Cash 75 00 Telephone Expense 007 Panid for January telephone senvice, Check 1601 10 3 Office Equipment Office Supplies 475 00 105 00 12 13 14 18 16 12 55 0 001a ash Purchased File cabinet and office supplies, Check 1602 1B 16