Wakefield Company discovered the following errors made in January 2010.
1. A payment of Salaries Expense of $800 was debited to Equipment and credited to Cash, both for $800.
2. A collection of $2,000 from a client on account was debited to Cash $200 and credited to Service Revenue $200.
3. The purchase of equipment on account for $680 was debited to Equipment $860 and credited to Accounts Payable $860.
Instructions
Correct the errors by reversing the incorrect entry and preparing the correct entry.

Question

Quizplus · Accepted Answer

The Answer of Wakefield Company discovered the following errors made in January 2010.
1. A payment of Salaries Expense of $800 was debited to Equipment and credited to Cash, both for $800.
2. A collection of $2,000 from a client on account was debited to Cash $200 and credited to Service Revenue $200.
3. The purchase of equipment on account for $680 was debited to Equipment $860 and credited to Accounts Payable $860.
Instructions
Correct the errors by reversing the incorrect entry and preparing the correct entry.

Wakefield Company Discovered the Following Errors Made in January 2010