Peter Cook, CPA, was asked by Carol Kane to review the accounting records and prepare the financial statements for her upholstering shop Peter reviewed the records and found three errors 1 Cash paid on accounts payable for $930 was recorded as a debit to Accounts Payable $390 and a credit to Cash $390 2 The purchase of supplies on account for $600 was debited to Equipment $600 and credited to Accounts Payable $600 3 The company paid dividends of $1,300 and the bookkeeper debited Accounts Receivable for $130 and credited Cash $130 Prepare an analysis of each error showing the (a) incorrect entry (b) correct entry (c) correcting entry Peter Cook, CPA, was asked by Carol Kane to review the accounting records and prepare the financial statements for her upholstering shop Peter reviewed the records and found three errors 1 Cash paid on accounts payable for $930 was recorded as a debit to Accounts Payable $390 and a credit to Cash $390 2 The purchase of supplies on account for $600 was debited to Equipment $600 and credited to Accounts Payable $600 The company paid dividends of $1,300 and the bookkeeper debited Accounts Receivable for $130 and credited Cash $130 Prepare an analysis of each error showing the (a) incorrect entry (b) correct entry (c) correcting entry

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Posted on Sep 15, 2024

Peter Cook, CPA, was asked by Carol Kane to review the accounting records and prepare the financial statements for her upholstering shop. Peter reviewed the

Peter Cook, CPA, was asked by Carol Kane to review the accounting records and prepare the financial statements for her upholstering shop. Peter reviewed the records and found three errors.

1.		Cash paid on accounts payable for $930 was recorded as a debit to Accounts Payable $390 and a credit to Cash $390.
2.		The purchase of supplies on account for $600 was debited to Equipment $600 and credited to Accounts Payable $600.
3.		The company paid dividends of $1,300 and the bookkeeper debited Accounts Receivable for $130 and credited Cash $130.

Prepare an analysis of each error showing the

(a)		incorrect entry
(b)		correct entry
(c)		correcting entry

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Peter Cook, CPA, was asked by Carol Kane to review the accounting records and prepare the financial statements for her upholstering shop. Peter reviewed the records and found three errors. 1. Cash paid on accounts payable for $930 was recorded as a debit to Accounts Payable $390 and a credit to Cash $390 2. The purchase of supplies on account for $600 was debited to Equipment $600 and credited to Accounts Payable $600 The company paid dividends of $1,300 and the bookkeeper debited Accounts Receivable for $130 and credited Cash $130 Prepare an analysis of each error showing the (a) incorrect entry (b) correct entry (c) correcting entry