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An inexperienced accountant for Huang Company made the following errors in recording merchandising transactions.

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An inexperienced accountant for Huang Company made the following errors in recording merchandising transactions.;1. A $302 refund to a customer for faulty merchandise was debited to Sales Revenue $302 and credited to Cash $302.;2. A $220 credit purchase of supplies was debited to Inventory $220 and credited to Cash $220.;3. A $204 sales discount was debited to Sales Revenue.;4. A cash payment of $67 for freight on merchandise purchases was debited to Freight-Out $670 and credited to Cash $670.;Prepare separate correcting entries for each error, assuming that the incorrect entry is not reversed. (Credit account titles are automatically indented when amount is entered. Do not indent manually.);No. Account Titles and Explanation Debit Credit;1.;2.;3.;4.;Exercise 4-3 The adjusted trial balance columns of the worksheet for DeSousa Company are as follows. The owner did not make any additional investments in the business in April.;DESOUSA COMPANY;Worksheet (partial);For the Month Ended April 30, 2014;Adjusted Trial Balance;Account Titles Dr. Cr.;Cash 11,653;Accounts Receivable 8,162;Prepaid Rent 2,424;Equipment 23,278;Accumulated Depreciation?Equip. 5,497;Notes Payable 5,720;Accounts Payable 4,877;Owner?s Capital 29,186;Owner?s Drawings 3,353;Service Revenue 15,885;Salaries and Wages Expense 10,927;Rent Expense 724;Depreciation Expense 644;Interest Expense 25;Interest Payable 25;Totals 61,190 61,190;Prepare an income statement.;DESOUSA COMPANY;Income Statement;For the Month Ended April 30, 2014

 

Paper#75486 | Written in 18-Jul-2015

Price : $56
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