problem 5 275105
Aug 29, 2021 | Uncategorized
Problem 4.3A Recording correcting entries. LO 4
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The following journal entries were prepared by an employee of Jupiter Company who does not have an adequate knowledge of accounting.
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| GENERAL JOURNAL |
PAGE 3 |
| Date |
Description |
Post. Ref. |
Debit |
Credit |
| 2013 |
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| April |
1 |
Accounts Payable |
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12,400 |
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Fees Income |
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12,400 |
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Performed services on credit |
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2 |
Cash |
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500 |
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Telephone Expense |
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500 |
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Paid for March telephone service, Check 1917 |
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3 |
Office Equipment |
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7,200 |
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Office Supplies |
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800 |
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Cash |
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8,400 |
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Purchased file cabinet and office supplies, Check 1918 |
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| (Assume that Office Equipment and Office Supplies were recorded at the correct values.) |
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Examine the above journal entries carefully and prepare the correct journal entries.(Omit the “$” sign in your response)
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| Date |
General Journal |
Debit |
Credit |
| April |
1 |
(Click to select)Accounts payableTelephone expenseFees incomeOffice equipmentOffice suppliesCashAccounts receivableUtilities |
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(Click to select)Office equipmentOffice suppliesFees incomeTelephone expenseCashUtilitiesAccounts payableAccounts receivable |
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2 |
(Click to select)Accounts payableCashOffice suppliesAccounts receivableTelephone expenseFees incomeUtilitiesOffice equipment |
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(Click to select)Accounts receivableOffice equipmentFees incomeAccounts payableOffice suppliesTelephone expenseCashUtilities |
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3 |
(Click to select)Accounts receivableOffice equipmentTelephone expenseUtilitiesFees incomeOffice suppliesCashAccounts payable |
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(Click to select)Accounts payableCashOffice suppliesTelephone expenseFees incomeOffice equipmentUtilitiesAccounts receivable |
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(Click to select)CashTelephone expenseFees incomeOffice suppliesAccounts payableUtilitiesOffice equipmentAccounts receivable |
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| Analyze: |
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After the correcting journal entries have been posted, what effect do the corrections have on the company’s reported assets?(Leave no cells blank be certain to enter to “0” wherever required; Select NE if there is “No Effect”. Omit the “$” sign in your response. Assume that the erroneous entries are reversed and the correct entries are posted, what is the impact on assets as a result of all corrections?)
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| Assets |
(Click to select)DecreasedNEIncreasedby |
$ |
