Peter Cook, CPA, was asked by Carol Kane to review the accounting records and prepare the financial

Question:

Peter Cook, CPA, was asked by Carol Kane to review the accounting records and prepare the for her upholstering shop. Peter reviewed the records and found three errors.
1. Cash paid on for $930 was recorded as a debit to $390 and a credit to Cash $390.
2. The purchase of supplies on account for $600 was debited to Equipment $600 and credited to $600.
3. The company paid dividends of $1,300 and the bookkeeper debited for $130 and credited Cash $130.
Prepare an analysis of each error showing the
(a) Incorrect entry
(b) Correct entry
(c) Correcting entry
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