Question
Correcting Entries The following errors were made in journalizing and posting transactions in March in the Seal Company. 1.A $1,700 payment for a cash purchase
Correcting Entries
The following errors were made in journalizing and posting transactions in March in the Seal Company.
1.A $1,700 payment for a cash purchase of a 2-year insurance policy was debited to Prepaid Insurance and credited to Accounts Payable.
2.A collection of $4,500 on account from a customer was recorded as a debit to Cash $4,500 and a credit to Sales Revenue $4,500.
3.A bill for $1,550 for new office equipment was debited to Office Supplies $1,550 and credited to Accounts Payable $550.
4.The receipt of $800 from a customer for future service was recorded as a debit to Accounts Receivable $800 and a credit to Unearned Revenue $800.
5.A payment of interest was charged to Notes Payable.
6.A purchase on account of office equipment was charged to Office Expense - amount $ 10,000
What are the correcting entries at May 31 assuming the incorrect entry is not reversed.
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