Question

Culver Company discovered the following errors made in January 2019. 1. A payment of Salaries and Wages Expense of $580 was debited to Equipment and credited to Cash, both for $580. 2. A collection of $3,700 from a client on account was debited to Cash $370 and credited to Service Revenue $370. 3. The purchase of equipment on account for $730 was debited to Equipment $450 and credited to Accounts Payable $450.

No. Account Titles and Explanation Credit Debit 580 1. Salaries and Wages Expense 0 580 Equipment (To reverse the incorrect entry) (To record the correct entry) Cash Service Revenue (To reverse the incorrect entry) Accounts Receivable (To record the correct entry) 3. Equipment 280 Accounts Payable (To reverse the incorrect entry) (To record the correct entry) SHOW LIST OF ACCOUNTS LINK TO TEXT Correct the errors without reversing the incorrect entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit No. 1. Cash Equipment Click if you would like to show Work for this question: Open Show Work

Answer 1

	Account Titles and Explanation	Debit	Credit
1	Cash	580
	Equipment		580
	(To reverse the incorrect entry)
	Salaries and Wages expense	580
	Cash		580
	(To record the correct entry)
2	Service Revenue	370
	Cash		370
	(To reverse the incorrect entry)
	Cash	3700
	Accounts Receivable		3700
	(To record the correct entry)
3	Accounts Payable	450
	Equipment		450
	(To reverse the incorrect entry)
	Equipment	730
	Accounts Payable		730
	(To record the correct entry)
2
	Account Titles and Explanation	Debit	Credit
1	Salaries and Wages expense	580
	Equipment		580
2	Service Revenue	370
	Cash	3330
	Accounts Receivable		3700
3	Equipment	280		=730-450
	Accounts Payable		280