For Each Entry Below Make a Correcting Entry If Necessary

question 200

Essay

For each entry below make a correcting entry if necessary. If the entry given is correct then state "No entry required."
(a) The $60 cost of repairing a printer was charged to Equipment.
(b) The $5000 cost of a major engine overhaul was debited to Maintenance and Repairs Expense. The overhaul is expected to increase the operating efficiency of the truck.
(c) The $6000 closing costs associated with the acquisition of land were debited to Miscellaneous Expense.
(d) A $500 charge for transportation expenses on new equipment purchased was debited to Freight-In.

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Definitions:

Debit Sheet

A record listing all debit transactions, often used in accounting to monitor expenditures.

Double-Entry Bookkeeping System

A method of bookkeeping where every entry to an account requires a corresponding and opposite entry to a different account, ensuring the accounting equation balances.

Single-Entry System

An accounting method where each financial transaction is recorded with a single entry to the accounting records, less complex than double-entry accounting.

Useful Reports

Reports that provide valuable information, aiding in decision-making or problem-solving processes.