E4-12 Max Weinberg Company discovered the following errors made in January 2008.

1. A payment of Salaries Expense of $600 was debited to Equipment and credited to Cash, both for $600.

2. A collection of $1,000 from a client on account was debited to Cash $100 and credited to Service Revenue $100.

3. The purchase of equipment on account for $980 was debited to Equipment $890 and credited to Accounts Payable $890.

Instructions

(a) Correct the errors by reversing the incorrect entry and preparing the correct entry.

(b) Correct the errors without reversing the incorrect entry.