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CLICK HERE TO ACCESS FULL VERSION Chapter 2 - Analyzing Transactions 226. The bookkeeper for Brockton Industries prepared the following journal entries and posted the entries to the general ledger as indicated in the T accounts presented. Assume that the dollar amounts and the descriptions of the entries are correct. July

3

11

12

25

7/3

Accounts Receivable Service Revenue Customers were billed for services completed.

1,000

Cash Accounts Receivable Payment is received from a customer billed for services on July 3.

500

Office Supplies Accounts Payable Purchased office supplies on credit; payment is due in 30 days.

600

Office Furniture Cash Payment is made for office furniture received on July 25.

700

Accounts Receivable 1,000

7/11

1,000

Cash 500 7/25

Office Supplies 7/12 600

7/3

700

500

600

Service Revenue 1,000 7/11

700

500

Accounts Payable 7/12 600 Office Furniture 7/25 700

Required If you assume that all journal entries have been recorded correctly, use the above information to: (1) Identify the postings to the general ledger that were made incorrectly. (2) Describe how the each incorrect posting should have been made. ANSWER: (1) The bookkeeper incorrectly posted the July 3, July 11, and 12 journal entries. (2) For the July 3 journal entry, the $1,000 credit to Service Revenue should have been posted to the Service Revenue account as a credit, not as a debit. For the July 11 journal entry, the $500 credit should be posted to Accounts Receivable, not to Service Revenue. For the July 12 journal entry, the $600 credit to Accounts Payable should have been posted as a credit, not as a debit. DIFFICULTY: Challenging Bloom's: Applying LEARNING OBJECTIVES: ACCT.WARD.18.02-03 - 02-03 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic

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Financial Accounting 15th Edition Warren Test Bank 2018 (9781337272124) (1337272124). Instant test bank download. Download from https://acco...

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