The following errors took place in journalizing and posting transactions: A. A w
ID: 2517657 • Letter: T
Question
The following errors took place in journalizing and posting transactions:
A.
A withdrawal of $5,000 by Stan Norton, owner of the business, was recorded as a debit to Office Expense and a credit to Cash.
B.
Accounts receivable payment for $7,800 was recorded as a debit to Cash and a credit to Fees Earned.
Journalize the entries to correct the errors. Omit the explanations.
A.
A withdrawal of $5,000 by Stan Norton, owner of the business, was recorded as a debit to Office Expense and a credit to Cash.
B.
Accounts receivable payment for $7,800 was recorded as a debit to Cash and a credit to Fees Earned.
Explanation / Answer
Correction Entries.
A. Drawings a/c Dr $5,000
To Office Expense $5,000
( Being Correction entry passed by Debiting Drawings which has to be actually debited and by crediting Office expense which is wrongly debited)
B. Fees Earned a/c Dr $ 7,800
To Account Receivable/ Trade receivable a/c $7,800
( Being correction entry passed by debiting fees earned which is wrongly credited and crediting account receivable which has to be actually credited)
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