All the journal entries shown below contain errors. The entries were prepared by an employee of New Bellmont 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 the company?

GENERAL JOURNAL PAGE 1 POST DATE DEBIT CREDIT 1 2019 2 Jan. 1Accounts Payable Fees Income 110101 00 1| 11010| 0011 3 Performed services on credlt 2 Cash 75 0 00 Telephone Expense 5101 0011 7 Pald for January telephone service, Check 1601 3 Office Equipment 250 00 250 00 1300 00 13 Purchased file cabinet and office supplles, Check 1602