Harken Company Discovered the Following Errors Made in January 2014

question 97

Essay

Harken Company discovered the following errors made in January 2014.
1. A payment of Salaries and Wages Expense of $600 was debited to Equipment and credited to Cash, both for $600.
2. A collection of $2,000 from a client on account was debited to Cash $200 and credited to Service Revenue $200.
3. The purchase of equipment on account for $680 was debited to Equipment $860 and credited to Accounts Payable $860.
Instructions
Correct the errors by reversing the incorrect entry and preparing the correct entry.

Compare and contrast the roles and characteristics of entrepreneurs and small business managers.

Grasp the significance of innovation in business growth.

Identify the behaviors and characteristics common among successful entrepreneurs.

Recognize the challenges and advantages of self-employment and starting a new business.

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Definitions:

Inflation Rate

The percentage change in the price level of goods and services in an economy over a period of time, often indicating the decrease in purchasing power of a currency.

Marginal Propensity

Marginal propensity measures the change in an economic agent's consumption or saving habits in response to a change in income, often used to analyze consumer behavior.

Disposable Income

The net amount households have to save and spend after factoring in income taxes.

Consumption Spending

The total amount of money spent by households and individuals on goods and services within a specific time period.