PronghornCompany discovered the following errors made in January 2022.

1.

A payment of Salaries and Wages Expense of $900was debited to Equipment and credited to Cash, both for $900.2.

A collection of $3,500from a client on account was debited to Cash $350and credited to Service Revenue $350.3.

The purchase of equipment on account for $720was debited to Equipment $270and credited to Accounts Payable $270.

(a)

Correct the errors by reversing the incorrect entry and preparing the correct entry.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Account Titles and Explanation

Debit

Credit

1.enter an account title to reverse the first incorrect entry

enter a debit amount

enter a credit amount

enter an account title to reverse the first incorrect entry

enter a debit amount

enter a credit amount

(To reverse the incorrect entry)

enter an account title to record the first correct entry

enter a debit amount

enter a credit amount

enter an account title to record the first correct entry

enter a debit amount

enter a credit amount

(To record the correct entry)

2.enter an account title to reverse the second incorrect entry

enter a debit amount

enter a credit amount

enter an account title to reverse the second incorrect entry

enter a debit amount

enter a credit amount

(To reverse the incorrect entry)

enter an account title to record the second correct entry

enter a debit amount

enter a credit amount

enter an account title to record the second correct entry

enter a debit amount

enter a credit amount

(To record the correct entry)

3.enter an account title to reverse the third incorrect entry

enter a debit amount

enter a credit amount

enter an account title to reverse the third incorrect entry

enter a debit amount

enter a credit amount

(To reverse the incorrect entry)

enter an account title to record the third correct entry

enter a debit amount

enter a credit amount

enter an account title to record the third correct entry

enter a debit amount

enter a credit amount

(To record the correct entry)