Question

During a maternity leave of the full-time bookkeeper, a temporary employee was involved in the following transactions.

1.
A payment by cheque for $420 to a repair shop for fixing the truck was debited to the Vehicles account and a credit to Cash.
2.
A deposit for a collection on account of $1,190 was debited to Cash and credited to Service Revenue.
3.
A cheque for $560 to pay for advertising expense was recorded as a Debit to Rent Expense and a credit to Cash.
4.
An invoice to a customer recorded for services rendered in the amount $620 was debited to Service Revenue and credited to Accounts Receivable.
5.
A payment of interest on a note payable in the amount of $30 was debited to Note Payable and credited to cash. No amount had been accrued for this interest.
6.
A payment to a supplier, for an earlier purchase on account of $370, was recorded as a debit to Accounts Payable for $37 and a credit to Cash for $37.
7.
An additional investment of cash of $3,600, from the owner H. Grant was recorded as a debit to Cash and a credit H. Grant, Drawings.

Correct the errors without reversing the incorrect entry.

No.
Account Titles and Explanation
Debit
Credit

Answer 1

No	Account Titles and Explanation	Debit	Credit
1	Repairs and maintenance expenses	$     420
	Vehicles		$     420
2	Service revenue	$ 1,190
	Accounts receivable		$ 1,190
3	Advertising expenses	$     560
	Rent expenses		$     560
4	Accounts receivable ($620+$620)	$ 1,240
	Service revenue		$ 1,240
5	Interest expenses	$        30
	Note payable		$        30
6	Accounts payable ($370-$37)	$     333
	Cash		$     333
7	H. Grant, Drawings	$ 3,600
	H. Grant, Capital		$ 3,600

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