Question

Assuming that all entries have been posted, prepare correcting entries for each of the following errors.

a. The following entry was made to record the purchase of $774 in supplies on account:

Supplies 142 774
Cash 101 774

b. The following entry was made to record the payment of $475 in wages:

Rent Expense 521 475
Cash 101 475

c. The following entry was made to record a $396 payment to a supplier on account:

Supplies 142 196
Cash 101 196

Answer 1

Answer and Explanation:

The correcting journal entries are shown below:

a. Cash Dr $774

To account payable $774

(Being purchase of supplies on account is recorded)

b. Wages expense Dr $475

To rent expense $475

(Being wages expense is recorded)

c. Account payable $396

To Supplies $196

To cash $200

(being cash paid is recorded)

These 3 correcting entries should be recorded