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

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Mason 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 $630 to a creditor was debited to Accounts Payable $360 and credited to Cash $360.
2. The purchase of supplies on account for $560 was debited to Equipment $56 and credited to Accounts Payable $56.
3. A $400 withdrawal of cash for M. Mason’s personal use was debited to Salaries Expense $400 and credited to Cash $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...
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Accounting Principles

ISBN: 978-0470533475

9th Edition

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

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