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  3. on may 3, it was discovered that the following err

On May 3, it was discovered that the following errors took place in journalizing and...

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Question

Accounting

On May 3, it was discovered that the following errors took place in journalizing and posting transactions:

a. Insurance of $15,600 paid for the current year was recorded as a debit to Insurance Expense and a credit to Prepaid Insurance.
b. A withdrawal of $9,000 by Brian Phillips, owner of the business, was recorded as a debit to Wages Expense and a credit to Cash.

Journalize the entries on May 3 to correct the errors. Use two entries to correct the error described in a. (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 the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

JOURNAL

ACCOUNTING EQUATION

Score: 58/76

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY
1
2
3
4
5
6

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