A company purchases a computer for $10,000 and pays cash. The accountant records the computer as a
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Question:
A company purchases a computer for $10,000 and pays cash. The accountant records the computer as a $1,000 debit to Equipment and a $1,000 credit to Cash but has not yet posted it to the general ledger. To correct this mistake, the accountant should:
Reverse the original entry by debiting Cash for $1,000 and crediting Equipment for $1,000 and posting it to the general ledger
Post a debit of $9,000 to Equipment and a credit to Cash for $9,000
Debit Equipment for an additional $9,000
Cross out or delete the original entry and journalize a debit to Equipment for $10,000 and a credit to Cash for $10,000
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
Posted Date: