Max Weinberg Company discovered the following errors made in January 2008 A payment of Salaries Expense of $600 was debited to Equipment and credited to Cash, both for $600 A collection of $1,000 from a client on account was debited to Cash $100 and credited to Service Revenue $100 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 Description Account Debit Credit 1 Cash Salaries Expense Equipment Service Revenue Accounts Receivable Cash Accounts Payable Accounts Payable Salaries Expense Service Revenue Accounts Receivable Equipment Cash Salaries Expense Accounts Payable Service Revenue Cash Equipment Accounts Receivable 2 Service Revenue Equipment Salaries Expense Cash Accounts Payable Accounts Receivable Accounts Receivable Accounts Payable Equipment Salaries Expense Service Revenue Cash Cash Salaries Expense Cash Accounts Payable Service Revenue Accounts Receivable Equipment 3 Cash Service Revenue Accounts Receivable Salaries Expense Accounts Payable Equipment Accounts Payable Salaries Expense Cash Service Revenue Accounts Receivable Equipment Equipment Accounts Receivable Equipment Accounts Payable Service Revenue Cash Salaries Expense (b) Correct the errors without reversing the incorrect entry (For multiple debit credit entries, list amounts from largest to smallest eg 10, 5, 3, 2 ) Description Account Debit Credit 1 Accounts Payable Equipment Salaries Expense Cash Service Revenue Accounts Receivable Salaries Expense Service Revenue Accounts Receivable Accounts Payable Cash Equipment 2 Accounts Payable Service Revenue Accounts Receivable Cash Equipment Salaries Expense Accounts Payable Accounts Receivable Service Revenue Cash Equipment Salaries Expense Salaries Expense Accounts Payable Cash Accounts Receivable Equipment Service Revenue 3 Service Revenue Accounts Payable Salaries Expense Equipment Accounts Receivable Cash Equipment Salaries Expense Accounts Payable Cash Service Revenue Accounts Receivable Click here if you would like to Show Work for this question

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Posted on Sep 17, 2024

Max Weinberg Company discovered the following errors made in January 2008. A payment of Salaries Expense of $600 was debited to Equipment and credited to

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

A payment of Salaries Expense of $600 was debited to Equipment and credited to Cash, both for $600.
A collection of $1,000 from a client on account was debited to Cash $100 and credited to Service Revenue $100.
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.

	Description/Account	Debit	Credit
1.	Cash



2.

	Cash

3.

	Equipment

(b) Correct the errors without reversing the incorrect entry. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)