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The following errors were reported by Claude Sample Sports Clinic during the month: An invoice for consultancy service provided to Running Track Club for $25,000 was left in a desk drawer unnoticed and had been omitted completely from the books. The records showed that a cash receipt for $15,000 was issued relating to this transaction while the balance was on account. The company records its consultancy fees in service revenue account. Purchase of medical supplies on February 3 was for $18,000and not $1,800 as previously incorrectly reported.  On Feb 1 the $55,000 invested by Sample ought to have been allocated $45,000 bank account and $10,000 office equipment based on confirmation from the owner that the previous info provided was incorrectly stated. Drawings of $1,000 were not recorded. An electricity bill for $5,000 paid by cash was placed in a desk drawer and not presented with the first set of transactions. The company records its electricity charges in the utility expense account.     Required:         i.         Record the journal entries necessary to correct each of the errors mentioned above. Narrations are not required

The following errors were reported by Claude Sample Sports Clinic during the month: An invoice for consultancy service provided to Running Track Club for $25,000 was left in a desk drawer unnoticed and had been omitted completely from the books. The records showed that a cash receipt for $15,000 was issued relating to this transaction while the balance was on account. The company records its consultancy fees in service revenue account. Purchase of medical supplies on February 3 was for $18,000and not $1,800 as previously incorrectly reported.  On Feb 1 the $55,000 invested by Sample ought to have been allocated $45,000 bank account and $10,000 office equipment based on confirmation from the owner that the previous info provided was incorrectly stated. Drawings of $1,000 were not recorded. An electricity bill for $5,000 paid by cash was placed in a desk drawer and not presented with the first set of transactions. The company records its electricity charges in the utility expense account.     Required:         i.         Record the journal entries necessary to correct each of the errors mentioned above. Narrations are not required

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter7: Accounting Information Systems
Section: Chapter Questions
Problem 1PB: On June 30, Isner Inc.s bookkeeper is preparing to close the books for the month. The accounts...
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The following errors were reported by Claude Sample Sports Clinic during the month:

  1. An invoice for consultancy service provided to Running Track Club for $25,000 was left in a desk drawer unnoticed and had been omitted completely from the books. The records showed that a cash receipt for $15,000 was issued relating to this transaction while the balance was on account. The company records its consultancy fees in service revenue account.
  2. Purchase of medical supplies on February 3 was for $18,000and not $1,800 as previously incorrectly reported.
  3.  On Feb 1 the $55,000 invested by Sample ought to have been allocated $45,000 bank account and $10,000 office equipment based on confirmation from the owner that the previous info provided was incorrectly stated.
  4. Drawings of $1,000 were not recorded.
  5. An electricity bill for $5,000 paid by cash was placed in a desk drawer and not presented with the first set of transactions. The company records its electricity charges in the utility expense account.

 

 

Required:

 

      i.         Record the journal entries necessary to correct each of the errors mentioned above. Narrations are not required

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Prepare the following for the month of February 2015:

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  2. Statement of owner’s equity
  3. Balance Sheet
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