Andrea Zowkewych, CGA, was asked by Jeff Scott to review the accounting records and prepare the financial statements for his antique shop for the month ended January 31. Andrea reviewed the records and found three errors.
1. Cash paid on accounts payable for $830 was recorded as a debit to Accounts Payable $380 and a credit to Cash $380.
2. The purchase of supplies on account for $500 was debited to Equipment $500 and credited to Accounts Payable $500.
3. Jeff withdrew cash for $2,500 and the bookkeeper debited Accounts Receivable for $250 and credited Cash $250.
Instructions
Prepare an analysis of each error showing the
a. incorrect entry.
b. correct entry.
c. correcting entry.

Question

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The Answer of Andrea Zowkewych, CGA, was asked by Jeff Scott to review the accounting records and prepare the financial statements for his antique shop for the month ended January 31. Andrea reviewed the records and found three errors.
1. Cash paid on accounts payable for $830 was recorded as a debit to Accounts Payable $380 and a credit to Cash $380.
2. The purchase of supplies on account for $500 was debited to Equipment $500 and credited to Accounts Payable $500.
3. Jeff withdrew cash for $2,500 and the bookkeeper debited Accounts Receivable for $250 and credited Cash $250.
Instructions
Prepare an analysis of each error showing the
a. incorrect entry.
b. correct entry.
c. correcting entry.

Andrea Zowkewych, CGA, Was Asked by Jeff Scott to Review