Acc557 Financial Accounting: E4-12 Max Weinberg Company discovered the following errors

Acc557 Financial Accounting

E4-12
Max Weinberg Company discovered the following errors made in January 2008.
1. A payment of Salaries Expense of $600 was debited to Equipment and credited to Cash, both for $600.
2. A collection of $1,000 from a client on account was debited to Cash $100 and credited to Service Revenue $100.
3. The purchase of equipment on account for $980 was debited to Equipment $890 and credited to Accounts Payable $890.

Instructions
(a) Correct the errors by reversing the incorrect entry and preparing the correct entry.
(b) Correct the errors without reversing the incorrect entry. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
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