Wakefield Company Discovered the Following Errors Made in January 2016

question 121

Essay

Wakefield Company discovered the following errors made in January 2016.
1. A payment of salaries expense of $900 was debited to Equipment and credited to Cash both for $900.
2. A collection of $2000 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.

---

Definitions:

Eponym

A term or name derived from the name of a person, whether real or fictional, often used in medicine, science, and other fields to commemorate discoverers or inventors.

Abstracting

The process of extracting essential information from a larger set of data or text to summarize or create a distilled version of the original content.

External Cause Codes

Codes used in medical classification to describe the circumstances or events that cause an injury or health condition.

Volunteer Activity

Volunteer activity encompasses any action or service performed willingly by an individual without financial or material compensation.