Andy Richter Company discovered the following errors that were made in January 2022. ...
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Accounting
Andy Richter Company discovered the following errors that were made in January A payment of Salaries and Wages Expense of $ was debited to Equipment and credited to Cash, both for $ Andy Richter recorded $ of depreciation on this "equipment". A collection of $ from a client on account was debited to Cash $ and credited to Service Revenue $ The purchase of equipment on account for $ was debited to Supplies $ and credited to Accounts Payable $ The purchase of Inventory for $ cash was debited to Prepaid Insurance and credited to Cash. At yearend, $ of the "prepaid insurance" was recorded as insurance expense. Instructions: a Correct the errors by reversing the incorrect entry and preparing the correct entry. b Correct the errors without reversing the incorrect entry. Challenge Exercise Solution a Cash Equipment Salaries and Wages Expense Cash. Accumulated DepreciationEquipment Depreciation Expense Service Revene Cash. Cash. Accounts Receivable. Accounts Payable Supplies Equipment Accounts Payable. 
Andy Richter Company discovered the following errors that were made in January
A payment of Salaries and Wages Expense of $ was debited to Equipment and credited to Cash,
both for $ Andy Richter recorded $ of depreciation on this "equipment".
A collection of $ from a client on account was debited to Cash $ and credited to Service
Revenue $
The purchase of equipment on account for $ was debited to Supplies $ and credited to
Accounts Payable $
The purchase of Inventory for $ cash was debited to Prepaid Insurance and credited to Cash. At
yearend, $ of the "prepaid insurance" was recorded as insurance expense.
Instructions:
a Correct the errors by reversing the incorrect entry and preparing the correct entry.
b Correct the errors without reversing the incorrect entry.
Challenge Exercise Solution
a
Cash
Equipment
Salaries and Wages Expense
Cash.
Accumulated DepreciationEquipment
Depreciation Expense
Service Revene
Cash.
Cash.
Accounts Receivable.
Accounts Payable
Supplies
Equipment
Accounts Payable.
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