Prepare a correcting entry for each of the following accounting errors: sheet (Obj. 5, 6) a. Debited
Question:
Prepare a correcting entry for each of the following accounting errors: sheet
(Obj. 5, 6)
a. Debited Supplies and credited Accounts Payable for a \(\$ 2,900\) purchase of office equipment on account.
b. Adjusted prepaid rent by debiting Prepaid Rent and crediting Rent Expense for \(\$ 900\). This adjusting entry should have debited Rent Expense and credited Prepaid Rent for \(\$ 900\).
c. Debited Salary Expense and credited Cash to accrue salary expense of \(\$ 900\).
d. Recorded the earning of \(\$ 3,200\) service revenue collected in advance by debiting Accounts Receivable and crediting Service Revenue.
e. Accrued interest revenue of \(\$ 800\) by a debit to Accounts Receivable and a credit to Interest Revenue.
f. Recorded a \(\$ 600\) cash purchase of supplies by debiting Supplies and crediting Accounts Correcting accounting errors
(Obj. 4) Payable.
Step by Step Answer:
Financial Accounting
ISBN: 9780133118209
2nd Edition
Authors: Charles T. Horngren, Jr. Harrison, Walter T.