Natal Company has an inexperienced accountant. During the first 2 weeks on the job, the accountant made

Question:

Natal Company has an inexperienced accountant. During the first 2 weeks on the job, the accountant made the following errors in journalizing transactions. All entries were posted as made.
1. A payment on account of R$840 to a creditor was debited to Accounts Payable R$480 and credited to Cash R$480.
2. The purchase of supplies on account for R$380 was debited to Equipment R$38 and credited to Accounts Payable R$38.
3. A R$500 cash dividend was debited to Salaries and Wages Expense R$500 and credited to Cash R$500.

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... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...