Transaction	Error	Correction Needed
Extra capital of $44,000	Credited to Sales	Should be credited to Capital
Goods for own use $3,500	Debited to General Expenses	Should be debited to Drawings
Private insurance $195	Debited to Insurance	Should be debited to Drawings
Purchase from S. King $1,250	Entered as $1,150	Should be corrected to $1,250
Cash banked $1,380	Credited to bank column, debited to cash column	Should be corrected to bank column
Cash drawings $1,400	Credited to bank column	Should be debited to Drawings
Returns inwards $760 from N. Harris	Entered in error in J. Moore’s account	Should be corrected to N. Harris account
Sale of equipment $5,500	Credited to Office Expenses	Should be credited to Sales
Requirement: Create the correcting journal entries and analyze their effect on the cash flow statement.