On March 1, it was discovered that the following errors took place in journalizing and posting transactions:
On March 1, it was discovered that the following errors took place in journalizing and posting transactions:
a.The receipt of $8,400 for services rendered was recorded as a debit to Accounts Receivable and a credit to Fees Earned.b.The purchase of supplies of $2,500 on account was recorded as a debit to Office Equipment and a credit to Supplies.Journalize the entries on March 1 to correct the errors. Use two entries to correct the error described in (b). (That is, record an entry to reverse the incorrect entry and a second entry to record the correct entry.) Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTSGeneral Ledger
ASSETS Cash Accounts Receivable Supplies Prepaid Insurance Land Office Equipment Automobiles
LIABILITIES Accounts Payable Unearned Rent Notes Payable Salaries Payable
EQUITY Common Stock Retained Earnings Dividends
REVENUE Fees Earned Sales Commission
EXPENSES Advertising Expense Automobile Expense Insurance Expense Rent Expense Salary Expense Supplies Expense Utilities Expense Miscellaneous Expense
How do I journalize the entries on March 1 to correct the errors?
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