College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 4, Problem 8SEB
FINDING AND CORRECTING ERRORS On April 25, after the transactions had been posted, Mary Smith discovered the following entry contains an error. When her customer received services, Cash was debited, but the service was provided on account. Correct the error in the journal using a correcting entry.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Suppose a co-worker has recorded a cash disbursement twice (Supplies Expense was debited twice for $100 and Cash was credited twice for $100) and wants you to record a correcting entry that will reverse the mistake. The correcting entry will record a debit to the Cash account and a credit to the Supplies account. Would you make this correcting entry? What should you investigate before making a decision about the correcting entry? Are there any other steps you would take to address this issue?
A customer of Mutare paid for merchandise originally purchased on account with a check thathas been erroneously entered into Mutare’s cash account for $570 (it actually has been issuedand paid for $750).Required:Record the appropriate journal entry to correct the error.
Which of the following errors would be detected by a trial balance?
Group of answer choices
The cashier pocketed the cash from a
cash sale and did not record it on the
register
A cash sale was recorded in the sales
account as $548 instead of $584 but
was correctly recorded in the bank
account
Supplies purchased on credit were
recorded as a debit to the plant and
equipment account and a credit to the
accounts payable account
Staff wages were recorded as office
expenses
Chapter 4 Solutions
College Accounting, Chapters 1-27
Ch. 4 - Source documents serve as historical evidence of...Ch. 4 - The chart of accounts lists capital accounts...Ch. 4 - No entries are made in the Posting Reference...Ch. 4 - When entering the credit item in a general...Ch. 4 - When an incorrect entry has been journalized and...Ch. 4 - Prob. 1MCCh. 4 - A revenue account will begin with the number...Ch. 4 - To purchase an asset such as office equipment on...Ch. 4 - When fees are earned and the customer promises to...Ch. 4 - When the correct numbers are used but are in the...
Ch. 4 - Prob. 1CECh. 4 - Prob. 2CECh. 4 - Prob. 3CECh. 4 - Prob. 4CECh. 4 - Trace the flow of accounting information through...Ch. 4 - Name a source document that provides information...Ch. 4 - Prob. 3RQCh. 4 - Prob. 4RQCh. 4 - Where is the first formal accounting record of a...Ch. 4 - Describe the four steps required to journalize a...Ch. 4 - In what order are the accounts customarily placed...Ch. 4 - Explain the primary advantage of a general ledger...Ch. 4 - Explain the five steps required when posting the...Ch. 4 - Prob. 10RQCh. 4 - Explain why the ledger can still contain errors...Ch. 4 - Prob. 12RQCh. 4 - What is a transposition error?Ch. 4 - What is a correcting entry?Ch. 4 - Prob. 1SEACh. 4 - GENERAL JOURNAL ENTRIES For each of the following...Ch. 4 - GENERAL LEDGER ACCOUNTS Set up T accounts for each...Ch. 4 - GENERAL JOURNAL ENTRIES Diane Bernick has opened...Ch. 4 - GENERAL LEDGER ACCOUNTS; TRIAL BALANCE Set up...Ch. 4 - FINANCIAL STATEMENTS From the information in...Ch. 4 - Prob. 7SEACh. 4 - FINDING AND CORRECTING ERRORS On May 25, after the...Ch. 4 - SERIES A PROBLEMS JOURNALIZING AND POSTING...Ch. 4 - JOURNALIZING AND POSTING TRANSACTIONS Jim Andrews...Ch. 4 - CORRECTING ERRORS Assuming that all entries have...Ch. 4 - Prob. 1SEBCh. 4 - GENERAL JOURNAL ENTRIES For each of the following...Ch. 4 - GENERAL LEDGER ACCOUNTS Set up T accounts for each...Ch. 4 - GENERAL JOURNAL ENTRIES Sengel Moon opened The...Ch. 4 - GENERAL LEDGER ACCOUNTS; TRIAL BALANCE Set up...Ch. 4 - FINANCIAL STATEMENTS From the information in...Ch. 4 - Prob. 7SEBCh. 4 - FINDING AND CORRECTING ERRORS On April 25, after...Ch. 4 - JOURNALIZING AND POSTING TRANSACTIONS Benito...Ch. 4 - Prob. 10SPBCh. 4 - CORRECTING ERRORS Assuming that all entries have...Ch. 4 - MANAGING YOUR WRITING You are a public accountant...Ch. 4 - MASTERY PROBLEM Barry Bird opened the Barry Bird...Ch. 4 - CHALLENGE PROBLEM Journal entries and a trial...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- A customer issued a note for an overdue account. Which of the following procedures is correct? A. The note is credited in the general journal by a debit to accounts receivable B. The amount will be posted to the credit side of the customer's card C. The amount will be posted to the debit side of the customer's card D. This will be posted to the accounts receivable general ledger on the debit side.arrow_forwardProvide an appropriate response based on the following scenarios. Assume that the accounting clerk posts a customer’s payment for the wrong amount, giving the customer credit for less than he or she actually paid. How will this error be detected? How might this error have been prevented? Assume that the employee who opens the mail steals a customer payment. How will this theft be detected? How might this theft have been prevented?arrow_forwardPrepare journal entries to record the November transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit (To record cash deposits on personal bank account) (To open bank account)arrow_forward
- Choose only one answer as well as state their reasons/rationale for the answer chosen. A customer entered the wrong account number on the memo line of the check mailed to the company. Consequently, another customer’s account was credited for that payment. The most effective way to prevent such problems would be to use:a. Turnaround documentsb. A validity check of customer account numbersc. Closed loop verificationd. Check digit verification of customer account numbersarrow_forward1. SEGREGATION OF FUNCTIONS to the AR department, which adjusts the customer Which, if any, of the following situations represents improper segregation of functions? Explain your accounts to reflect the return. answer. a. The billing department prepares the customers' invoices and records the sale in the sales journal. b. Mail room clerk opens cash receipts envelopes from customers and also prepares the remittance list. c. Accounting clerk receives journal vouchers from various departments and also posts to the GL accounts. d. The sales department approves sales credit memos as the result of product returns and forwards thesearrow_forwardUnder the imprest system, which amount the following situations when accounting entry is/are made? a. petty cashier accommodated and encashed the check of her friend from the purchasing department b. Christmas party contributions made the custodian's circle of friends where the custodians is in charge of its safekeeping c. it is a reporting period and the fund aren't replenished yet d. pending request of the petty cash custodian to increase the petty cash fund e. request and disbursement of fun by the company's messenger for the weekarrow_forward
- Which of the following errors will be detected by a trial balance? a. Posting a credit to Sales instead of the Accounts Payable b. Incorrecty computing the balance of the cash account c. Not journalizing a complete sales transaction d. Forgetting to post a complete purchase transactionarrow_forwardWhich of the following statements is not correct? O A trial balance would help in detecting an error made while transcribing the debit side of a journal entry to the ledger O A journal discloses in one place the complete effects of a transaction O The correct sequence of steps in the recording process is: posting. journalizing, analyzing The chart of accounts is a listing of the accounts and the account numbers which identify their location in the ledgerarrow_forwardOn October 1, 2024, Splish Brothers Company establishes a petty cash fund by issuing a cheque for $275 to Charles Wood, the custodian of the petty cash fund. On October 31, 2024, Charles Wood submitted the following paid petty cash receipts for replenishment of the petty cash fund when there is $22 cash in the fund: Freight in Supplies expense Entertainment of clients Postage $35 99 74 38 Prepare the journal entries required to establish the petty cash fund on October 1 and the replenishment of the fund on October 31. The company uses a perpetual inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries efor credit entries. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)arrow_forward
- Your customer has paid their bill, yet the Accounts Receivable balance has not changed. Which of the following could have caused this error? A Bypassing the Pay Bills window and writing a check to the vendor B Deleting the deposit before reconciliation C Running the Open Invoices report before accepting payment D Bypassing the Receive Payments window and entering the payment directly in the Bank Deposits windowarrow_forwardAs the full-time bookkeeper, your job is to make any corrections to the general ledger accounts. Each correction must include the reason for the change and the effect on each account, whether it is an increase or decrease. For the third time this month, a co-worker has recorded a cash receipt twice and wants you to record a correcting entry that will reverse the mistakes. The correcting entry will record a credit to the Cash account and a debit to the Sales account. Your co-worker has offered to buy you dinner for fixing this mistake. Respond to the following in a minimum of 175 words: What should you investigate before making a decision about the correcting entry? What is happening to the Cash account? Would you accept a dinner offer from your co-worker for fixing the mistake?arrow_forwardRead and analyze each of the transactions and explain whether they are considered improper segregation of functions? Explain your answer. ed from ro rata hich person The billing department prepares the customers' invoices and records the sale in the sales journal. a. b. Mailroom clerk open cash receipts envelopes from customers and also prepares the remittance list. ses Accounting clerk receives journal vouchers from various departments and post to the GL accounts. ensation C. does and 00.00 d. The sales department approves sales credit memos as the result of product returns and forwards these to the AR department, which adjusts the customer accounts to reflect the return. IIarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
Accounting Changes and Error Analysis: Intermediate Accounting Chapter 22; Author: Finally Learn;https://www.youtube.com/watch?v=c2uQdN53MV4;License: Standard Youtube License