Alec Company does bookkeeping for many clients. Prepare correcting entries for the following transactions for the various clients of Alec Company. Do not reverse the original entries. Clearly mark your answer (300 pts).

1. A $1,000 paid cash dividend was recorded as a $100 debit to withdrawals and $100 credit to cash.

2. A purchase of equipment on account for $840 was incorrectly recorded for $480.