The Following Errors in Recording the Transactions for December Were $\quad$

question 85

Essay

The following errors in recording the transactions for December 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 12 of a general journal. Omit the descriptions. Dec. 5 $\quad$ Discovered that a purchase of office equipment for $\$ 1,000$ cash was
$\quad$$\quad$ recorded as a debit to Shop Equipment and a credit to Cash
$\quad$ 10 $\quad$ Discovered that a check for $\$ 2,500$ to the owner, Hank Rudolph, to
$\quad$$\quad$$\quad$ pay one month's utilities on his personal apartment was recorded as a debit to Utilities Expense and a credit to Cash
$\quad$ 15 $\quad$ Discovered that a receipt of $\$ 30,000$ cash from a customer for
$\quad$$\quad$$\quad$ services performed was recorded as a debit to Cash and a credit to Accounts Receivable
$\quad$ 20 $\quad$ Discovered that $\$ 3,000$ for this month's rent was recorded as a
$\quad$$\quad$$\quad$ debit to Cash and a credit to Prepaid Rent

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Definitions:

Common Stock

Equity ownership in a corporation, entitling holders to vote on company matters and receive dividends.

Lending Money

The act of giving money to another party with the expectation of receiving the money back plus interest or other benefits.

Collecting Loans

The process of obtaining repayment of a loan or debt, including the principal and any accrued interest.

Investing Activities

Financial activities related to the acquisition and disposal of long-term assets and other investments not considered as cash equivalents.