What are the correcting entries to adjust the below incorrect records? In the closing entries of the Income Statement, the insurance expense was recorded $1350 instead of $1530. A collection of $3,000 from a client on account was debited to Cash $300 and credited to Service Revenue $300.
What are the correcting entries to adjust the below incorrect records? In the closing entries of the Income Statement, the insurance expense was recorded $1350 instead of $1530. A collection of $3,000 from a client on account was debited to Cash $300 and credited to Service Revenue $300.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter5: Accounting Systems
Section: Chapter Questions
Problem 2E: Based on the data presented in Exercise 5-1, assume that the beginning balances for the customer...
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What are the correcting entries to adjust the below incorrect records?
- In the closing entries of the Income Statement, the insurance expense was recorded $1350 instead of $1530.
- A collection of $3,000 from a client on account was debited to Cash $300 and credited to Service Revenue $300.
A collection of $3,000 from a client on account was debited to Cash $300 and credited to Service Revenue $300. | Answer 1Choose...Dr Insurance Expense $180 - Cr Income Summary $180Dr Insurance Expense $1530 - Cr Income Summary $180 & Cr Insurance Expense $1350Dr Service Revenue $300 - Dr Cash $2700 - Cr Accounts Receivable $3000Dr Income Summary $3000 - Cr Owner’s Capital $3000Dr Income Summary $180 - Cr Insurance Expense $180 |
In the closing entries of the Income Statement, the insurance expense was recorded $1350 instead of $1530. |
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