The bookkeeper for Brockton Industries prepared the following journal entries and posted the entries to the general ledger as indicated in the T accounts presented.Assume that the dollar amounts and the descriptions of the entries are correct.
Required: If you assume that all journal entries have been recorded correctly,use the above information to:
(1)Identify the postings to the general ledger that were made incorrectly.
(2)Describe how each incorrect posting should have been made.
Definitions:
Income Statement
A financial statement that shows a company's revenue and expenses over a specific period, resulting in net profit or loss.
Financial Errors
Mistakes in the accounting records that can distort the financial statements and mislead users.
Retained Earnings
The fraction of net earnings that is not allotted for dividends, but is retained by the company to reinvest in the core business activities or to pay off debts.
Annual Revenues
The total amount of money received by a company from its activities, such as sales of products or services, before any expenses are subtracted, within a fiscal year.
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