Problem Data

• Consider the following four transactions for Fitzgerald Co.:
  • Services provided to a customer on account for $3,500
  • Salaries previously accrued in the amount of $2,500 were paid
  • Advertising expense in the amount of $1,500 was paid when incurred (i.e., when the bill was received)
  • Depreciation expense for the period was $5,000 for the period

Required

• Prepare, in good form, the journal entry for each of the four transactions listed above. Use the General Journal format shown on page 75 of the textbook when preparing your journal entries without any lines, color, or shading.
• Assume Fitzgerald Co. failed to record the four transactions shown above, determine the net (i.e., combined) error on the following four items, i.e., overstated, understated, or no effect, and the amount.
  • Net income
  • Total assets
  • Total owners' equity
  • Working capital
• Do not use color to shade any cells, place lines or cell borders around your journal entries. Use uniform column widths and row heights.