Transaction	Error	Correction Needed
Extra capital of $32,000	Credited to Sales	Should be credited to Capital
Goods for own use $2,900	Debited to General Expenses	Should be debited to Drawings
Private insurance $165	Debited to Insurance	Should be debited to Drawings
Purchase from Q. Martin $1,190	Entered as $1,090	Should be corrected to $1,190
Cash banked $1,150	Credited to bank column, debited to cash column	Should be corrected to bank column
Cash drawings $1,180	Credited to bank column	Should be debited to Drawings
Returns inwards $640 from G. Johnson	Entered in error in P. Evans’s account	Should be corrected to G. Johnson account
Sale of equipment $4,800	Credited to Office Expenses	Should be credited to Sales
Requirement: Create the correcting journal entries and analyze their effect on the cash flow statement.