Corrections. (15 points) Intelligent Media Company had the following journal ent

Question

Corrections. (15 points) Intelligent Media Company had the following journal entries for
each of the transactions described. Prepare the correcting entry needed for each
transaction, including explanation.
a. A credit customer paid $600 to Intelligent Media Company for the customer's outstanding
balance. The journal entry made by the company was:
Cash 600
Sales 600
b. A repair was made on some equipment. The cost was supposed to be charged to Repair
Expense. The journal entry made by the company was:
Equipment 100
Accounts Payable 100
c. Depreciation for the current year was supposed to be $3,100, however the following journal
entry was made by the company:
Depreciation Expense 1,300
Equipment 1,300

Explanation / Answer

a. (debit) Accounts receivable 600 (credit) Cash 600 b. (debit) Accounts payable 100 (credit) Repair expense 100 c. (debit) Depreciation expense 1800 (credit) Equipment 1800

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