Hanson Company has an inexperienced accountant, during the first months on the j

Question

Hanson Company has an inexperienced accountant, during the first months on the job, the accountant made the following errors in journalizing transitions. All entries were posted as made. The purchase of supplies for $700 cash was debited to Equipment $730 and credited to Cash $230. A $S40 dividend was debited to Salaries and Wages Expense $970 and credited to Cash $970. A payment on account of $890 to a creditor was debited to Accounts Payable $300 and credited to Cash $300. Prepare me correcting entries. (credit account titles are automatically indented when amount is entered. Do not indent manually.)

Explanation / Answer

Equipment -DR 230

To Cash 230

Purchases-Dr 700

To Cash 700

Purchases-Dr 700

To Equipment 230

To Cash 470

Salaries & Wages-Dr 970

To Cash 970

Dividend-Dr 540

To Cash 540

Dividen-Dr 540

Cash-Dr 430

To Salaries & Wages 970

Accounts Payable-Dr 300

To Cash 300

Creditors-Dr 890

To Cash 890

Creditors-Dr 890

To Accounts Payable 300

To Cash 590

Correcting Enteries Wrong Entry Passed Right Entry Correcting Entry

Equipment -DR 230

To Cash 230

Purchases-Dr 700

To Cash 700

Purchases-Dr 700

To Equipment 230

To Cash 470

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