Question

Crane Company has an inexperienced accountant. During the first two weeks on the job, the accountant made the following errors in journalizing transactions. All incorrect entries were posted. 1. A payment on account of $690 to a creditor was debited $590 to Accounts Payable and credited $590 to Cash. 2. The purchase of supplies on account for $620 was not recorded. 3. A $470 withdrawal of cash for L. Crane's personal use was debited $470 to Salaries Expense and credited $470 to Cash. 4. Received $700 cash from a customer on account. Cash was debited $700 and Service Revenue was credited $700. A customer was billed $420 for services provided. Accounts Receivable was debited $420 and Unearned Revenue was credited $420. Prepare the correcting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Show all X 7:18 PM 2/14/2020 DLL

Answer 1

Sr.No.	Account Title	Debit	Credit
1	Accounts Payable	$100
	Cash		$100
2	Supplies	$620
	Accounts Payable		$620
3	L.Creane, Withdrawals	$470
	Salaries Expense		$470
4	Service Revenue	$700
	Accounts Receivable		$700
5	Unearned Service Revenue	$420
	Service Revenue		$420