[Minder86]

I was wodnering If someone can tell me how these were done. I am a mother of a nursing student and I am interested in doing accounting diploma. So I want to learn before I decide. I was wondering if someone can tell me what the incorrect entry, the correct entry and the correcting entry would be. I had this question posted up before, but someone really confused me. I was wodnering what would the answers be fr this so I can figure it out myself after that :) If anyone can help, that would be great. If not.. that's fine as well. I can somehow manage to answer this myself.

1. cash received from a customer on account was recorded as $670 instead of $760.

2. The purchase on account of a computer monitor that cost $900 was recorded as a debit to supplies and a credit to accounts receivable for $900.

3. The computer monitor purchased in item 2 was purchased on march 1 and has an estimated useful life of 5 years. Amortization for march has not been recorded yet.

4. a payment of $75 for advertising expense was entered as a debit to miscellaneous expense of $50 and a credit to cash of $50.

5. A $110 cash payment for a repair expense on equipment was recorded as a debit to equipment of $101 and a credit to cash of $101.

6. the owner, hubert maurice, paid himself $1,800 and recorded this as salary expense.

7. march rent of $1,150 was paid on march 26. The company has not recorded this transaction

[morgaine300]

Each one of these is going to be different, so no one can tell you any one thing to do so that you understand and can then do it for yourself. This isn't like the same thing over and over so that if you get the first, you can get the rest.

They are already telling you what the incorrect entry was. What you need to know is what the correct entry is, and that requires that you understand how to do debits & credits. You need to know that first, because you absolutely will not learn how to do them just from these few examples. Do you feel you already have a decent understanding of how to do transactions? If not, then you need to back up and learn that first. You can't correct something if you don't know how to do it.

Correcting something can be done in two ways. One of which would be to back out the incorrect entry - literally reverse it out. Then do the correct one. You can also journalize the "difference" between the two entries.

I will give you an example of what I mean. Let's say the error is that a purchase of supplies on account was incorrectly credited to cash. It already says what was done incorrectly.

You also need to know that there was no cash in that transaction. Since it was "on account," it should have been credited into accounts payable instead. That fastest way to correct it is only dealing with the incorrect part. Since it was credited to cash as an error, you "un-do" that by debiting it. Un-do something by doing the opposite. Since it was supposed to be credited to accounts payable, you do so. Hence:

Dr. Cash
Cr. Accounts Payable

Since each of your transactions is different, that long thing I just explained above would have to be explained for every one of these transactions. You need to know how to do entries correctly first, and second the concept behind how to correct one, which I just gave an example of. You also have to think carefully and not shrug it off if you don't get it in 5 seconds.

See if you can give these a try.