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- Please help me correct the red boxes Ayayai Company discovered the following errors made in January 2019. 1. A payment of Salaries and Wages
- Please help me correct the red boxes
Ayayai Company discovered the following errors made in January 2019. 1. A payment of Salaries and Wages Expense of $500 was debited to Equipment and credited to Cash, both for $500. 2. A collection of $3,000 from a client on account was debited to Cash $300 and credited to Service Revenue $300 3. The purchase of equipment on account for $520 was debited to Equipment $250 and credited to Accounts Payable $250. Correct the errors by reversing the incorrect entry and preparing the correct entry. (Cre No. Account Titles and Explanation 1. Cash Debit Credit 500 Equipment (To reverse the incorrect entry) Salaries and Wages Expense 500 500 Cash 500 (To record the correct entry) 2. Service Revenue 300 Cash 300 (To reverse the incorrect entry) Cash 3000 Accounts Receivable 3000 (To record the correct entry) 3. Accounts Payable 250 250 Equipment (To reverse the incorrect entry) Equipment 520 Accounts Payable 520 To record the correct entry) Correct the errors without reversing the incorrect entry. Credit account titles are auto matica y n ente when a No. 1. Salaries and Wages Expense s en ered Dno intern manua . Account Titles and Explanation Debit Credit 500 Cash 500 2. Cash 3000 Service Revenue 3000 Accounts Receivable 3. Equipment 520 Accounts Payable 520Step by Step Solution
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