Question

The following is the Bravo Unlimited adjusted Trial Balance.
Bravo Unlimited
Adjusted Trial Balance
31-Dec-17
Account Title			Debit	Credit
Cash			$88,450
Accounts Receivable			331,860
Supplies			11,255
Prepaid Rent			5,500
Equipment			295,285
Accumulated Depreciation				$236,260
Accounts Payable				72,555
Wages Payable				10,000
Capital Stock				220,000
Retained Earnings				111,145
Service Revenue				898,105
Interest Income				1,500
Rent Expense			66,000
Wages Expense			537,260
Supplies Expense			42520
Utilities Expense			8,595
Depreciation Expense			156000
Interest Expense			6,840	________
Totals			$1,549,565	$1,549,565
As the senior accountant you had just prepared & posted the journal entry that closed the revenue accounts to the Income Summary Account. Suddenly you noticed that your bookkeeper made a tragic error in recording one of the expenses during the last month of the fiscal year. The bookkeeper had recorded the December utility bill as a debit to Accounts Receivable and a credit to Wages Expense for $500. Use this information to prepare the compound general journal entries (without explanation) needed to:
a. correct the error
b. record the closing entry for the expenses
General Journal & Solution Notes:
	Date	Accounts	Debit	Credit
a.
b.

Answer 1

Solution:

Journal Entries - Bravo Unlimited
Event	Date	Particulars	Debit	Credit
a	31-Dec	Wages Expense Dr	$500.00
		Utility Expense Dr	$500.00
		To Accounts receivables		$500.00
		To Accounts Payable		$500.00
b	31-Dec	Income summary Dr	$818,215.00
		To Rent Expense		$66,000.00
		To Wages Expense		$537,760.00
		To Supplies Expense		$42,520.00
		To Utilities Expense		$9,095.00
		To Depreciation Expense		$156,000.00
		To Interest Expense		$6,840.00