Joshua Company discovered the following errors made in January 2014. 1. 2. 3. (a
ID: 2487385 • Letter: J
Question
Joshua Company discovered the following errors made in January 2014.
1.
2.
3.
(a) 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.)
Date
Account Titles and Explanation
Debit
Credit
1.
A payment of Salaries and Wages Expense of $574 was debited to Equipment and credited to Cash, both for $574.2.
A collection of $3,450 from a client on account was debited to Cash $330 and credited to Service Revenue $330.3.
The purchase of equipment on account for $830 was debited to Equipment $380 and credited to Accounts Payable $380.Explanation / Answer
Date Account Titles and Explanation Debit Credit 1 cash $ 574 Equipment $ 574 (To reverse the incorrect entry.) Salaries & wages $ 574 Cash $ 574 (To record the correct entry.) 2 Service Revenue $ 330 Cash $ 330 (To reverse the incorrect entry.) Cash $ 3,450 Accounts Receivable $ 3,450 (To record the correct entry.) 3 Accounts payable $ 380 Equipment $ 380 (To reverse the incorrect entry.) Equipment $ 830 Accounts payable $ 830
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