The Following Errors Took Place in Journalizing and Posting Transactions

question 55

Essay

The following errors took place in journalizing and posting transactions:
a.
A withdrawal of $5,000 by Stan Norton, owner of the business, was recorded as a debit to Office Expense and a credit to Cash.
b.
An accounts receivable payment for $7,800 was recorded as a debit to Cash and a credit to Fees Earned.
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Journalize the entries to correct the errors. Omit the explanations.

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Definitions:

Common Shares

Equity securities that represent ownership in a company, providing voting rights and a claim on a portion of the company's profits.

Financing Activities

Transactions related to obtaining or repaying capital, such as issuing equity or taking out loans.

Shareholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership interest.