Remington Company Discovered the Following Errors Made in January 2015

question 95

Essay

Remington Company discovered the following errors made in January 2015
1. A payment of salaries and wages of $1,000 was debited to Equipment and credited to Cash, both for $1,000. Remington recorded $200 of depreciation on this "equipment".
2. A collection of $3,000 from a client on account was debited to Cash $300 and credited to Service Revenue $300.
3. The purchase of supplies on account for $840 was debited to Supplies $480 and credited to Accounts Payable $480.
4. The purchase of short-term investments for $1,500 cash was debited to Prepaid Rent and credited to Cash. At year end, $500 of the "prepaid rent" was recorded as rent expense.
Instructions
(a) Correct the errors by reversing the incorrect entry and preparing the correct entry.
(b) Correct the errors without reversing the incorrect entry.

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Definitions:

Voltage-Sensitive

Referring to mechanisms or devices that respond to changes in electrical potential or voltage across their membrane or structure.

Nerve Impulses

Electrical signals that transport information along the neurons, facilitating communication within the nervous system.

Movement

The act or process of moving, involving physical change in position or relocation of an object or organism.