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.

1. You need to remove the $600 debit to Equipment and debit the correct account for $600.

2. You need to debit Cash for $900, remove the $100 credit from Service Revenue, and credit Accounts Receivable for $1000.

3. You need to debit Equipment and credit Accounts Payable for $90.