Dao Vang, CPA, was retained by Universal Cable to prepare financial statements for April 2015. Vang accumulated
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Question:
UNIVERSAL CABLE | ||
Debit | Credit | |
Cash | $4,024 | |
Accounts Receivable | 3,303 | |
Supplies | 746 | |
Equipment | 10,682 | |
Accumulated Depreciation-Equip. | $1,350 | |
Accounts Payable | 2,047 | |
Salaries and Wages Payable | 723 | |
Unearned Service Revenue | 881 | |
Common Stock | 8,762 | |
Retained Earnings | 3,691 | |
Service Revenue | 5,867 | |
Salaries and Wages Expense | 3,202 | |
Advertising Expense | 583 | |
Miscellaneous Expense | 260 | |
Depreciation Expense | 521 | |
$23,321 | $23,321 |
1. | Cash received from a customer on account was recorded as $830 instead of $380. | |
2. | A payment of $76 for advertising expense was entered as a debit to Miscellaneous Expense $76 and a credit to Cash $76. | |
3. | The first salary payment this month was for $1,899, which included $715 of salaries payable on March 31. The payment was recorded as a debit to Salaries and Wages Expense $1,899 and a credit to Cash $1,899. (No reversing entries were made on April 1.) | |
4. | The purchase on account of a printer costing $238 was recorded as a debit to Supplies and a credit to Accounts Payable for $238. | |
5. | A cash payment of repair expense on equipment for $72 was recorded as a debit to Equipment $27 and a credit to Cash $27. |
Prepare an analysis of each error showing the incorrect entry, the correct entry, and the correcting entry. Items 4 and 5 occurred on April 30, 2015.
Related Book For
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
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