Question: The following general journal entries (presented in a simpliï¬ed format) were made recently by the bookkeeper of Morgans Gas Emporium: Required: (a) Brieï¬y describes the

The following general journal entries (presented in a simpliï¬ed format) were made recently by the bookkeeper of Morgan€™s Gas Emporium:

Required:
(a) Brieï¬‚y describes the transaction that resulted in each of these journal entries.
(b) Suppose that the bookkeeper inadvertently recorded the third entry by debiting Notes Payable and crediting Equipment, each for $4,000. How would this error have affected the assets and liabilities of Morgan€™s Gas Emporium?
(c) How would the error in part (b) affect the trial balance prepared at the end of the period for Morgan€™s Gas Emporium?

General Journal Debit Credit 400 270 Description Supplies 400 Cash Interest Expense 270 Cash Equipment 4,000 Notes Payable 4,000

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