a. Utilities expense of $7,300 paid for the current month was recorded as a debit to Miscellaneous Expense and a credit to Utilities Expense.
b. The payment of $6,100 from a customer on account was recorded as a debit to Cash and a credit to Accounts Payable.
Journalize the entries to correct the errors. Omit explanations.
Answer:
a.
Utilities Expense 7,300
Miscellaneous Expense 7,300
Utilities Expense 7,300
Cash 7,300
Note: The first entry in (a) reverses the incorrect entry, and the second entry
records the correct entry. These two entries could also be combined into one
entry as shown below; however, preparing two entries would make it easier
for someone to understand later what happened and why the entries were
necessary.
Utilities Expense 14,600
Miscellaneous Expense 7,300
Cash 7,300
b.
Accounts Payable 6,100
Accounts Receivable 6,100