The following journal entries were prepared by an employee of Global Travel Agency who does not have
The following journal entries were prepared by an employee of Global Travel Agency who does not have an adequate knowledge of accounting.
Examine the journal entries carefully to locate the errors. Prepare journal entries to correct the errors. Assume that Office Equipment and Office Supplies were recorded at the correct values. However, the items were paid for entirely in cash, not on credit. Assume the errors are found and corrected on the last day of the month.
General journal, page 1 is shown. Date, description, post ref, debit, and credit are the five column heads. Post ref column is blank. Three entries are shown with debit values filled first followed by credit values with account names. Description is at the bottom of each entry.
After the correcting journal entries have been posted, what effect do the correcting entries have on the company’s reported assets?
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