Hanson Company has an inexperienced accountant. During the first month on the job, the accountant made the

Question:

Hanson Company has an inexperienced accountant. During the first month on the job, the accountant made the following errors in journalizing transactions. All entries were posted as made.
1. The purchase of supplies for $650 cash was debited to Equipment $210 and credited to Cash $210.
2. A $500 withdrawal of cash for B. Hanson’s personal use was debited to Salaries and Wages Expense $900 and credited to Cash $900.
3. A payment on account of $820 to a creditor was debited to $280 and credited to Cash $280.
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...