The Following Errors in Recording the Transactions for June Were

question 26

Essay

The following errors in recording the transactions for June were discovered in the general journal the next month after the data had been posted to the ledger. Record the necessary correcting entries on page 2 of a general journal. Omit the descriptions.
June
1 Discovered that a purchase of supplies for $800 cash was recorded as a debit to Equipment and a credit to Cash
2 Discovered that a check for $1,100 to the owner, Hank Rudolph, to pay one month's rent on his personal apartment was recorded as a debit to Rent Expense and a credit to Cash
3 Discovered that a receipt of $3,000 cash from a credit customer was recorded as a debit to Cash and a credit to Accounts Payable
4 Discovered that $350 services performed on credit were recorded as a debit to Cash and a credit to Fees Income

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Definitions:

Annual Cash Inflows

The total amount of money received by a business within one fiscal year from its operations, investments, and financing activities.

Salvage Value

The estimated residual value of an asset at the end of its useful life, considered for depreciation calculations.

Working Capital Investment

Funds used by a company to finance its day-to-day operations, including investments in inventory and accounts receivable.

Net Present Value

The calculation used to determine the current value of a series of future cash flows by discounting them at a specific rate.