Joshua Company discovered the following errors made in January 2014.
1. A payment of Salaries and Wages Expense of $700 was debited to Equipment and credited to Cash, both for $700.
2. A collection of $800 from a client on account was debited to Cash $300 and credited to Service Revenue $300.
3. The purchase of equipment on account for $760 was debited to Equipment $670 and credited to Accounts Payable $670.

Instructions
(a) Correct the errors by reversing the incorrect entry and preparing the correct entry.
(b) Correct the errors without reversing the incorrect entry.