Hanson Company has an inexperienced accountant. During the first month on the job, the accountant made the
Question:
1. The purchase of supplies for $650 cash was debited to Equipment $210 and credited to Cash $210.
2. A $500 withdrawal of cash for B. Hanson’s personal use was debited to Salaries and Wages Expense $900 and credited to Cash $900.
3. A payment on account of $820 to a creditor was debited to Accounts Payable $280 and credited to Cash $280.
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...
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Accounting Principles
ISBN: 978-1118875056
12th edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
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