Exercise 4-12 a-b

Flint Company discovered the following errors made in January 2019.

1.

A payment of Salaries and Wages Expense of $720was debited to Equipment and credited to Cash, both for $720.2.

A collection of $7,700from a client on account was debited to Cash $770and credited to Service Revenue $770.3.

The purchase of equipment on account for $610was debited to Equipment $450and credited to Accounts Payable $450.

Correct the errors by reversing the incorrect entry and preparing the correct entry.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Account Titles and Explanation

Debit

Credit

1.

(To reverse the incorrect entry)

(To record the correct entry)

2.

(To reverse the incorrect entry)

(To record the correct entry)

3.

(To reverse the incorrect entry)

(To record the correct entry)

Correct the errors without reversing the incorrect entry.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Account Titles and Explanation

Debit

Credit

1.

2.

3.