An inexperienced accountant for Huang Company made the following errors in recording merchandising transactions.
A $302 refund to a customer for faulty merchandise was debited to Sales Revenue $302 and credited to Cash $302.
A $220 credit purchase of supplies was debited to Inventory $220 and credited to Cash $220.
A $204 sales discount was debited to Sales Revenue.
A cash payment of $67 for freight on merchandise purchases was debited to Freight-Out $670 and credited to Cash $670.
Prepare separate correcting entries for each error, assuming that the incorrect entry is not reversed. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation
The adjusted trial balance columns of the worksheet for DeSousa Company are as follows. The owner did not make any additional investments in the business in April.
DESOUSA COMPANY Worksheet (partial) For the Month Ended April 30, 2014
Adjusted Trial Balance
Salaries and Wages Expense
Prepare an income statement.
DESOUSA COMPANY Income Statement For the Month Ended April 30, 2014
The income statement of Gopitkumar Co. for the month of July shows net income of $1,840 based on Service Revenue $6,040, Salaries and Wages Expense $2,327, Supplies Expense $1,363, and Utilities Expense $510. In reviewing the statement, you discover the following.
Insurance expired during July of $483 was omitted.
Supplies expense includes $180 of supplies that are still on hand at July 31.
Depreciation on equipment of $224 was omitted.
Accrued but unpaid salaries and wages at July 31 of $404 were not included.
Services performed but unrecorded totaled $518.
Prepare a correct income statement for July 2014.
GOPITKUMAR CO. Income Statement For the Month Ended July 31, 2014
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Santa Ana Services was formed on May 1, 2014. The following transactions took place during the first month.
Transactions on May 1:
Don Humes invested $40,500 cash in the company, as its sole owner.
Hired two employees to work in the warehouse. They will each be paid a salary of $3,060 per month.
Signed a 2-year rental agreement on a warehouse; paid $22,400 cash in advance for the first year.
Purchased furniture and equipment costing $30,130. A cash payment of $11,300 was made immediately; the remainder will be paid in 6 months.
Paid $1,510 cash for a one-year insurance policy on the furniture and equipment.
Purchased basic office supplies for $570 cash.
Purchased more office supplies for $1,510 on account.
Total revenues earned were $18,830—$7,530 cash and $11,300 on account.
Paid $390 to suppliers for accounts payable due.
Received $3,350 from customers in payment of accounts receivable.
Received utility bills in the amount of $380, to be paid next month.
Paid the monthly salaries of the two employees, totalling $6,120.
Prepare journal entries to record each of the events listed. (Record entries in the order displayed in the problem statement. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)