Andrea Zowkewych, CPA was asked by Jeff Scott to review the accounting records and prepare the financial
Question:
Andrea Zowkewych, CPA was asked by Jeff Scott to review the accounting records and prepare the financial statements for his antique shop for the month ended January 31. Andrea reviewed the records and found three errors:
1. Cash paid on accounts payable for $730 was recorded as a debit to Accounts Payable $370 and a credit to cash $370.
2. The purchase of supplies on account for $610 was debited to Equipment $610 and credited to Accounts Payable $630.
3. Jeff withdrew cash for $3,600 and the bookkeeper debited Accounts Receivable for $300 and credited cash $360.
Prepare an analysis of each error showing the
a) Incorrect entry
b) Correct entry
c) Correcting entry
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,