On July 24, it was discovered that the tollowing errors took place in joumalzing

Question

On July 24, it was discovered that the tollowing errors took place in joumalzing and posting transactions a. Cash or $8,000 received on account was recorded as a debitoFees Earned and agede to Cash b. A $1,760 purchase of supplies for cash was recorded as a debit to Supplies Expense and a credit to Accounts Payable Jounalire the entries on July 24 to corect the ewrors. Use two transactions to cornect the evror descnbed in b(That is, record an entry to reverse the incorrect entry and a entry) Refer to the Chart of Accounts for exact wording of account nes

Explanation / Answer

Solution:

Journal Entries Event Particulars Debit Credit a Cash Dr $17,600.00              To Fees earned $17,600.00 (Being cash received for fees $8,800 incorrectly credited to cash and debited to fees earned, now corrected) b1 Accounts payable Dr $1,760.00              To Supplies Expense $1,760.00 (Being reversal of incorrect entry recorded) b2 Supplies Dr $1,760.00              To Cash $1,760.00 (To record purchase of supplies for cash)

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