Patel Company has an inexperienced accountant. During the first 2 weeks on the job, the accountant made the following errors in journalizing transactions. All entries were posted as made.

A payment on account of $750 to a creditor was debited to Accounts Payable $570 and credited to Cash $570.
The purchase of supplies on account for $560 was debited to Equipment $56 and credited to Accounts Payable $56.
A $500 withdrawal of cash for N. Patel's personal use was debited to Salaries and Wages Expense $500 and credited to Cash $500.

Instructions

Prepare the correcting entries.

Solution

Patel Company
Correcting Journal Entries

Problems: Completing the Accounting Cycle

Problem-1: Completing the Accounting Cycle

The trial balance columns of the worksheet for Wareen Roofing at March 31, 2019, are as follows. Wareen Roofing Worksheet For the Month Ended March 31, 2019 Other data A...

Problem-2: Completing the Accounting Cycle

The adjusted trial balance columns of the worksheet for Thao Company, owned by D. Thao, are as follows. Thao Company Worksheet For the Year Ended December 31, 2019 Instructions Complete...

Problem-3: Completing the Accounting Cycle

The completed financial statement columns of the worksheet for Bray Company are shown as follows. Bray Company Worksheet For the Year Ended December 31, 2019 Instructions Prepare an income statement,...

Problem-4: Completing the Accounting Cycle

Vang Management Services began business on January 1, 2019, with a capital investment of $120,000. the company manages condominiums for owners (Service Revenue) and rents space in its own office...

Problem-5: Completing the Accounting Cycle

Anya Clark opened Anya's Cleaning Service on July 1, 2019. During July, the following transactions were completed. July 1Anya invested $20,000 cash in the business. 1Purchased used truck for $12,000,...

Problem-6: Completing the Accounting Cycle

Casey Hartwig, CPA, was retained by Global Cable to prepare financial statements for April 2019. Hartwig accumulated all the ledger balances per Global's records and found the following. Global Cable...

Problem-7: Completing the Accounting Cycle

The trial balance columns of the worksheet for Dixon Company at June 30, 2019, are as follows DIXON COMPANY Worksheet For the Month Ended June 30, 2019 Other data A...

Problem-8: Completing the Accounting Cycle

The adjusted trial balance columns of the worksheet for Savaglia Company are as follows Savaglia Company Worksheet (partial)For the Month Ended April 30, 2020 Instruction Complete the worksheet

Problem-9: Completing the Accounting Cycle

Worksheet data for Savaglia Company are present as follows Savaglia Company Worksheet (partial)For the Month Ended April 30, 2020 The owner did not make any additional investments in the business...

Problem-10: Completing the Accounting Cycle

The adjustments columns of the worksheet for Becker Company are shown below. Instructions Prepare the adjusting entries Assuming the adjusted trial balance amount for each account is normal. Indicate the...

Problem-11: Completing the Accounting Cycle

Selected worksheet data for Rose Company are presented below. Instructions Fill the missing amounts Prepare the adjusting entries that were made

Problem-12: Completing the Accounting Cycle

Okabe Company ended its fiscal year on July 31, 2020. The company's adjusted trial balance as of the end of its fiscal year is shown belowOkabe Company Adjusted Trial BlanceJuly...

Problem-13: Completing the Accounting Cycle

Selected accounts for Tamora's Salon are presented below. All June 30 postings are from closing entries. Instruction Prepare the closing entries that were made. Post the closing entries to Income...

Problem-14: Completing the Accounting Cycle

Noah Bahr Company discovered the following errors made in January 2019. A payment of Salaries and Wages Expense of $700 was debited to Equipment and credited to Cash, both for...

Problem-15: Completing the Accounting Cycle

Patel Company has an inexperienced accountant. During the first 2 weeks on the job, the accountant made the following errors in journalizing transactions. All entries were posted as made. A...

Problem-16: Completing the Accounting Cycle

The adjusted trial balance for McC Bowling Alley at December 31, 2019, contains the following accounts DebitCredit Buildings$128,800Owner's Capital$115,000 Accounts Receivable14,520Accumulated Depreciation-Buildings42,600 Prepaid insurance4,680Accounts Payable12,300 Cash18,040Notes Payable97,780 Equipment62,400Accumulated Depreciation-Equipment18,720 Land67,000Interest...

Problem-17: Completing the Accounting Cycle

The following items were taken from the financial statements of J. Pineda Company Long-term debt$1,000Accumulated depreciation-equipment$5,655 Prepaid insurance880Accounts payable1,444 Equipment11,500Notes Payable (due after 2020)400 Stock investments (long-term)264Owner's capital12,955 Debt investments...

Problem-18: Completing the Accounting Cycle

These financial statement items are for Basten Company at year-end, July 31, 2019. Salaries and Wages Payable$2,080Notes Payable (long-term)$1,800 Salaries and Wages Expense48,700Cash14,200 Utilities Expense22,600Accounts Receivable9,780 Equipment34,400Accumulated depreciation-equipment6,000 Accounts Payable4,100Owner's...

Problem-19: Completing the Accounting Cycle

Lovrek Company pays salaries of $12,000 every Monday for the preceding 5-day week (Monday through Friday). Assume December 31 falls on a Tuesday, so Lovrek's employees have worked 2 days...

Problem-20: Completing the Accounting Cycle

On December 31, the adjusted trial balance of Shihata Employment Agency shows the following selected data. Accounts Receivable$24,500Service Revenue$92,500 Interest Expense7,700Interest Payable2,200 Analysis shows that adjusting entries were made to...

Completing the Accounting Cycle

Problem-15: Completing the Accounting Cycle

Instructions

Solution

Latest Articles