Transaction	Error	Correction Needed
Extra capital of $27,000	Credited to Sales	Should be credited to Capital
Goods for own use $2,300	Debited to General Expenses	Should be debited to Drawings
Private insurance $160	Debited to Insurance	Should be debited to Drawings
Purchase from G. Young $1,130	Entered as $1,030	Should be corrected to $1,130
Cash banked $930	Credited to bank column, debited to cash column	Should be corrected to bank column
Cash drawings $1,060	Credited to bank column	Should be debited to Drawings
Returns inwards $510 from C. Davis	Entered in error in L. Johnson’s account	Should be corrected to C. Davis account
Sale of equipment $4,200	Credited to Office Expenses	Should be credited to Sales
Requirement: Create the correcting journal entries and analyze their effect on the cash flow statement.