All the journal entries shown below contain errors. The entries were prepared by an employee of Texas Corporation who does not have an adequate knowledge of accounting.
INSTRUCTIONS
Examine the journal entries carefully to locate the errors. Provide a brief written description of each error. Assume that Office Equipment and Office Supplies were recorded at the correct values.

Analyze:
After the correcting journal entries have been posted, what effect do the corrections have on the reported assets of the company?

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GENERAL JOURNAL PAGE POST REF DATE DESCAIPTION DEBIT CREDIT 2013 2 Jan. 1 Accounts Payable Fees Income 45 0 00 4 50 003 Performed services on credit 2 Cash 6 2 50 Telephone Expense 6 2 50 7 Paid for January telephone service, Check 1601 10 10 3 Office Equipment Office Supplies 3 7 5 00 95 00 12 4 5 0 00 13 14 15 16 12 Cash 13 Purchased file cabinet and office supplies, Check 1602 16