An auditor reviewed the accounting records of Showbiz Video. The auditor wrote a list of transactions, outlined below, describing the errors discovered in the March records. The general journal for March and a portion of the general ledger are included in your working papers.

Instructions

1. Record correcting entries on general journal. Use March 31 as the date and Memorandum 50 as the source document for all correcting entries.

2. Some errors will not require correcting entries but will require a general ledger correction. Make the appropriate general ledger corrections.

3. Post all correcting entries to the general ledger accounts.

Transcribed Image Text:

Date Transactions Mar. 3 The $125 purchase was for office supplies. 7 A $200 payment to a creditor, Broad Street Office Supply, was not posted to the account. 13 Greg Failla withdrew $1,200 from the business for personal use. Cash totaling $2,000 was received for video rentals. 17 19 A $75 receipt from Shannon Flannery was posted as $57. 27 Greg Failla invested an additional $3,000 in the business. 29 The revenue of $1,000 was for video rentals.