Acc557 Financial Accounting: E4-13 Kogan Company has an inexperienced accountant

Acc557 Financial Accounting


Exercise 4-13
Kogan Company has an inexperienced accountant. During the first 2 weeks on the job, the accountant made the following errors in journalizing transactions. All entries were posted as made.

1. A payment on account of $840 to a creditor was debited to Accounts Payable $480 and credited to Cash $480.

2. The purchase of supplies on account for $380 was debited to Equipment $38 and credited to Accounts Payable $38.

3. A $500 cash dividend was debited to Salaries and Wages Expense $500 and credited to Cash $500.

Instructions:
Prepare the correcting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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