Question

On March 1, it was discovered that the following errors took place in journalizing and posting transactions:

a.	Rent Expense of $4,750 paid for the current month was recorded as a debit to Miscellaneous Expense and a credit to Rent Expense.
b.	The payment of $4,100 from a customer on account was recorded as a debit to Cash and a credit to Accounts Payable.

Journalize the entries on March 1 to correct the errors. Use two entries to correct the error described in (a). (That is, record an entry to reverse the incorrect entry and a second entry to record the correct entry.) Refer to the Chart of Accounts for exact wording of account titles.

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6

Answer 1

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
Part a		Rent Expense		$4,750				($4,750)
		Miscellaneous Expense			$4,750			$4,750
		(To reverse the incorrect entry)
		Rent Expense		$4,750				($4,750)
		Cash			$4,750	($4,750)
		(to record correct entry)
Part b		Accounts Payable		$4,100			-$4,100
		Cash			$4,100	-$4,100
		(To reverse the incorrect entry)
		Cash		$4,100		$4,100
		Accounts Receivable			$4,100	-$4,100
		(to record correct entry)

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