Hanson Company has an inexperienced accountant. During the first month on the job, the accountant made the following errors in journalizing transactions. All entries were posted as made.

1.The purchase of store supplies on account for $1,510 was recorded as a debit to Supplies $1,150 and a credit to Accounts Payable $1,150.

2.The purchase of office supplies for $650 cash was debited to Equipment $210 and credited to Cash $210.

3.A $500 withdrawal of cash for B. Hanson's personal use was debited to Salaries and Wages Expense $900 and credited to Cash $900.

4.A payment on account of $820 to a creditor was debited to Accounts Payable $280 and credited to Cash $280.

5.A payment of Salaries and Wages Expense of $700 was debited to Equipment and credited to Cash, both for $700.

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

7.The purchase of equipment on account for $760 was debited to Equipment $670 and credited to Accounts Payable $670.

Instructions

(a) Correct the errors by reversing the incorrect entry and preparing the correct entry. (5)

(b) Correct the errors without reversing the incorrect entry. (3)