Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 4-BA The following accounting items were found in the journal of Wildhorse Company: 1. 2. 3. 4. S. 6. 7. 8. The payment of

image text in transcribed
Problem 4-BA The following accounting items were found in the journal of Wildhorse Company: 1. 2. 3. 4. S. 6. 7. 8. The payment of the current month's rent for $590 was recorded as a debit to Interest Payable and a credit to Cash, both for $590. (Note: This had not been previously accrued.) The collection of an account receivable for $480 was debited to Cash and credited to Service Revenue, both for $480. A payment for Utilities Expense of $230 was recorded as a debit to Utilities Expense and a credit to Cash, both for $320. A customer was billed $950 for services provided on account. Accounts Receivable was debited and Uneamed Revenue was credited, both for $950. A $600 accrual of Interest Revenue was recorded as a debit to Interest Expense and a credit to Interest Receivable, both for $600. A payment of a $210 account payable was recorded as a debit to Accounts Payable and a credit to Cash, both for $210. A $320 advance from a customer was recorded as a debit to Cash and a credit to Service Revenue, both for $320. The purchase of $1,900 of equipment on account was recorded as a debit to Repair Expense and a credit to Accounts Payable, both for $1,900. Correct any error by reversing the incorrect entry and then recording the correct entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Credit Account Titles and Explanation 1. Reverse incorrect entry: Correct entry: 2. Reverse incorrect entry

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sound Investing, Chapter 24 - The Auditors??? Opinion

Authors: Kate Mooney

2nd Edition

0071719466, 9780071719469

More Books

Students also viewed these Accounting questions