Transaction	Error	Correction Needed
Extra capital of $21,000	Credited to Sales	Should be credited to Capital
Goods for own use $1,800	Debited to General Expenses	Should be debited to Drawings
Private insurance $130	Debited to Insurance	Should be debited to Drawings
Purchase from R. Davis $1,030	Entered as $930	Should be corrected to $1,030
Cash banked $710	Credited to bank column, debited to cash column	Should be corrected to bank column
Cash drawings $880	Credited to bank column	Should be debited to Drawings
Returns inwards $380 from T. Lee	Entered in error in S. Harris’s account	Should be corrected to T. Lee account
Sale of equipment $3,600	Credited to Office Expenses	Should be credited to Sales
Requirement: Create the correcting journal entries and evaluate the impact on the cash flow statement.