FREE Trial

The following errors took place in journalizing and posting transactions: a. Insurance of $18,000 paid for the current year was

Question:

The following errors took place in journalizing and posting transactions:

a. Insurance of $18,000 paid for the current year was recorded as a debit to Insurance Expense and a credit to Prepaid Insurance.

b. A withdrawal of $10,000 by Brian Phillips, owner of the business, was recorded as a debit to Wages Expense and a credit to Cash.

Journalize the entries to correct the errors. Omit explanations.

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Answer rating: 100% (6 reviews)

a The correction could be made with one or two entries as s…View the full answer


answer-question
Answered By
tutor-profile-image
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening. My Expert Service Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+ 65+ Reviews 86+ Question Solved
Related Book For  answer-question
Corporate Financial Accounting

Corporate Financial Accounting

ISBN: 9781337398169

15th Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

See More Books
Question Details
Chapter # 2
Section: Exercises
Problem: 21
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: December 19, 2016 10:40:02
See More Questions

Students also viewed these Accounting questions

Q:
The following errors took place in journalizing and posting transactions: a. The receipt of $6,480 for services rendered was recorded as a debit to Accounts Receivable and a credit to Fees Earned. b....
A:
a b Cash......
Q:
The following errors took place in journalizing and posting transactions: a. Rent of $6,000 paid for the current month was recorded as a debit to Rent Expense and a credit to Prepaid Rent. b. A...
A:
a b Pr......
Q:
The following errors took place in journalizing and posting transactions: a. Cash of $3,750 received on account was recorded as a debit to Fees Earned and a credit to Cash. b. A $1,500 purchase of...
A:
a b Cash 7......
Q:
An analyst expects that 20% of all publicly traded companies will experience a decline in earnings next year. The analyst has developed a ratio to help forecast this decline. If the company is headed...
A:
Let event D be Experience a decline and event N be Ratio is ne......
Q:
Clayton and Margie Gulledge owned a house at 532 Somerset Place, N.W. (the Somerset property) as tenants by the entirety. They had three children: Bernis Gulledge, Johnsie Walker, and Marion Watkins....
A:
Watkins is correct The applicable rule in a large majority of jurisdictions is that either party to......
Q:
In a group of adults, some own iPads, and others do not. If two adults are randomly selected from this group, how many total outcomes are possible? Draw a tree diagram for this experiment.
A:
Let I person owns an iPad and N pe......
Q:
It is evident that emotional intelligence (eI) is the single most important predictor of the capacity for effective work performance and professional success. organisations should concentrate their...
A:
The statement that emotional intelligence EI is the single most important predictor of effective work performance and professional success is a perspe......
Q:
A U.S. company has two manufacturing plants, one in the United States and one in another country. Both produce the same item, each for sale in their respective countries. However, their productivity...
A:
Productivity is referred to as a measure used to gauge the effect......
Q:
Given is the following NFA with three states: 1, 2, and 3. Start 2 Final 3 1 QUESTION 8 Given is the following NFA with three states: 1, 2, and 3. In the context of converting this NFA to DFA...
A:
Click to View...
Q:
When Justin and Nicole formed a partnership, Nicole signed over ownership of 1,000 shares of $15 par value stock she owns in a publicly traded corporation. The partners agreed to sell the stock in...
A:
Answer 12 000 Explanation Shares signed on 1000 shares Par valu......
Q:
The following preliminary unadjusted trial balance of Ranger Co., a sports ticket agency, does not balance: When the ledger and other records are reviewed, you discover the following: (1) The debits...
A:
RANGER CO Unadjusted Trial Balance August 31 2016 Debit Credit Balances Bala......
Q:
The following errors took place in journalizing and posting transactions: a. Cash of $8,800 received on account was recorded as a debit to Fees Earned and a credit to Cash. b. A $1,760 purchase of...
A:
a Cash 17 600 Fees Earned 8 800 Accounts Receiva......
Q:
In 2014, Grossfeld Company has net credit sales of $1,600,000 for the year. It had a beginning accounts receivable (net) balance of $108,000 and an ending accounts receivable (net) balance of...
A:
a Net credit sales Average net accounts receiv......
Q:
A $1,000 par value bond with an annual coupon rate of 5%, and callable at $1,050, can be converted into 18 shares of common stock. Currently, common stock sells for $55 and the bond sells for $1,020....
A:
Click to View...
Q:
An M-digit non-negative integer n is a Langford Pairing of length M if it has the following properties: It has an even number of digits (so M is even, although the number n does not have to be even)....
A:
Python program def isLangfordPairing n Convert n to a string to iterate through its digi......
Q:
Using ER Assistant (recommended) or Visio, create an ER diagram (ERD) that has at least 5 entities but no more than 6 entities. Each entity must have a minimum of 5 attributes that full describe that...
A:
Click to View...
Q:
Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin...
A:
SOLUTION To determine the financial advantage or disadvantage of discontinuing the Linens Department......
Q:
1. What is the purpose of using functions in a Python script? 2. Write Python code to define a function called greetings() that when called will greet the user by name and on the next line display...
A:
Following are the answers to the given questions 1 The main purpose of using functions in Python is to encapsulate a block of code into a reusable and......
Q:
Suppose that Deja owns a McDonald's franchise. She decides to move her restaurant's checking account to Wells Fargo, which causes the changes shown on the following T-account. If the required reserve...
A:
With a required reserve ratio of 10 percent Wells Fa......
Q:
Where are the olfactory sensory neurons, and why is that site poorly suited for their job?
A:
The receptors are located i......
Q:
McIntyre Company adheres to a policy of depositing all cash receipts in a bank account and making all payments by check. The cash account as of December 31 has a credit balance of $1,850, and there...
A:
a Assuming no errors have occurred the credit balance in the cash accou......
Q:
McIntyre Company adheres to a policy of depositing all cash receipts in a bank account and making all payments by check. The cash account as of December 31 has a credit balance of $1,850, and there...
A:
a Assuming no errors have occurred the credit balance in the cash accou......
Q:
eCatalog Services Company performed services in October for a specific customer, for a fee of $7,890. Payment was received the following November. (a) Was the revenue earned in October or November?...
A:
a The revenue was earned in October because eCatalog Services C......
Social Psychology Unraveling The Mystery 1st Edition - ISBN: 0205165214 - Free Book