Wildhorse Company discovered the following errors made in January 2020.

1.		A payment of Salaries and Wages Expense of $300 was debited to Equipment and credited to Cash, both for $300.
2.		A collection of $5,400 from a client on account was debited to Cash $540 and credited to Service Revenue $540.
3.		The purchase of equipment on account for $400 was debited to Equipment $650 and credited to Accounts Payable $650.

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.
	(To reverse the incorrect entry)
	(To record the correct entry)
2.
	(To reverse the incorrect entry)
	(To record the correct entry)
3.
	(To reverse the incorrect entry)
	(To record the correct entry)