Choi Company has an inexperienced accountant. During the first two weeks on the job, the accountant made
Question:
1. A payment on account of $750 to a creditor was debited $570 to Accounts Payable and credited $570 to Cash.
2. The purchase of supplies on account for $560 was not recorded.
3. A $500 withdrawal of cash for L. Choi's personal use was debited $500 to Salaries Expense and credited $500 to Cash.
4. Received $700 cash from a customer on account. Cash was debited $700 and Service Revenue was credited $700.
5. A customer was billed $350 for services provided. Accounts Receivable was debited $350 and Unearned Revenue was credited $350.
Instructions
Prepare the correcting entries?
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Related Book For
Accounting Principles
ISBN: 978-1119048503
7th Canadian Edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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