All the journal entries shown below contain errors. The entries were prepared by an employee of Helena Corporation who does not have an adequate knowledge of accounting.

INSTRUCTIONS
Examine the journal entries carefully to locate the errors. Prepare journal entries to correct the errors. Assume that Office Supplies and Office Equipment were recorded at the correct values. However, the items were purchased with cash. Check 1602 was properly processed in the accounting records and was not for the January 3, 20X1, items purchased. Assume the errors are found and corrected on the last day of the month.

Analyze: 

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

Transcribed Image Text:

1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 DATE 20X1 Jan. 2 Cash GENERAL JOURNAL DESCRIPTION 1 Accounts Payable Fees Income Performed services on credit Telephone Expense Paid for January telephone service, Check 1601 3 Office Equipment Office Supplies Accounts Payable Purchased file cabinet and office supplies, Check 1602 POST. REF. DEBIT 1100 00 750 00 1250 00 250 00 PAGE CREDIT 1 1 2 1100 00 3 4 01 1500 00 5 6 750 00 7 8 9 10 11 12 13 14 15 16 17