E4-12 - Credit 1 Cash 600 Equipment 600 Salaries Expense...

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Max Weinberg Company discovered the following errors made in January 2008. 1. A payment of Salaries Expense of $600 was debited to Equipment and credited to Cash, both for $600. 2. A collection of $1,000 from a client on account was debited to Cash $100 and credited to Service Revenue $100. 3. The purchase of equipment on account for $980 was debited to Equipment $890 and credited to Accounts Payable $890. Instructions (a) Correct the errors by reversing the incorrect entry and preparing the correct entry. Description/Account Debit
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Unformatted text preview: Credit 1. Cash 600 Equipment 600 Salaries Expense 600 Cash 600 2. Service Revenue 100 Cash 100 Cash 1000 Accounts Receivable 1000 3. Accounts Payable 890 Equipment 890 Equipment 980 Accounts Payable 980 (b) Correct the errors without reversing the incorrect entry. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) Description/Account Debit Credit 1. Salaries Expense 600 Equipment 600 2. Cash 900 Service Revenue 100 Accounts Receivable 1000 3. Equipment 90 Accounts Payable 90...
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