Question

Journalize each correcting entry discovered during August of the current year: Use page 15 of the journal. Transactions: Aug. 1 Discovered that a transaction for this expense was journalized and posted in error as a debit to Repairs Expense instead of Utilities Expense, $530.00, MG6. 5 Discovered that a cash investment by Vivian Lynum, owner, was joumalized and posted in error as a credit to Sales Instead of Vivian Lynum, Capital, $1.200.00 M67. GENERAL JOURNAL DATE ACCOUNT TITLE DOC. NO POST DEBIT CREDIT 1 Aug. 1 Utilities Expense M66 530.00 Repairs Expense 530.00 5 Sales M67 1.200.00 Vivian Lynum, Capital 1.200,00It was also discovered that two posting errors were made in the Supplies account. The July 6 entry amount should have been $160.00. The July 30 entry included a credit to the Supplies account for $140.00 that should have been a debit. Determine what amount should be entered in each lettered cell. (If a cell should have a zero balance, it should be left blank.)

Answer 1

Answer:

Journalizing correcting entries:

Aug. 1

Debit Utilities Expense $530

Credit Repairs Expense $530

To correct wrong posting.

Aug. 5:

Debit Sales Revenue $1,200

Credit Vivian Lynum, Capital $1,200

To correct wrong posting.

July 30:

Debit Supplies Account $280

Credit Suspense Account $280

To correct the wrong posting.

Explanation:

The July 6 entry is difficult to decide the correcting entry since the wrong amount was not given.  There is nothing that can be done with the $160 supplied in the question.