Answer with its Explanation:
On 5, Dec, the missing entry to record the purchase of office equipment must be recorded as under:
Dr Office Equipment $1,100
Cr Payables or Cash Account $1,100
Now we will reverse the recording of purchase of office equipment as shop equipment as under:
Dr Payables or Cash Account $1,100
Cr Shop Equipment $1,100
Alternative method: Post the net effect in books as under:
Dr Office Equipment $1,100
Cr Shop Equipment $1,100
On 10, Dec, the payment to the owner is drawing and the correct entry to record the drawing is as under:
Dr Drawings $2,700
Cr Cash Account $2,700
Now the entry that we previously posted incorrectly would be reversed as under:
Dr Cash Account $2,700
Cr Utilities expenses $2,700
Alternative method: Post the net effect in books as under:
Dr Drawings $2,700
Cr Utilities expenses $2,700
On 15, Dec, the correct entry to record the missing entry of receipt from accounts receivables would be as under:
Dr Accounts receivable $30,500
Cr Cash Account $30,500
On 20, Dec, the first thing we will do is eliminate the effect of the incorrect entry which was incorrectly posting to the cash account with rental amount hence the correct entry to eliminate this would be as under:
Dr Prepaid rentals $3,150
Cr Cash Account $3,150
Now the correct entry would be to record the rent expense as under:
Dr Rent expense $3150
Cr Cash account $3,150
Alternative method: Post the net effect in books as under:
Dr Prepaid rentals $3,150
Dr Rent expense $3150
Cr Cash account $6,300
