As Mel Smith was doing his year-end accounting, he noticed that the bookkeeper had made errors in recording several transactions. The erroneous transactions are as follows:
(a) A check for $700 was issued for goods previously purchased on account. The bookkeeper debited Accounts Receivable and credited Cash for $700. What is the correcting entry needed for this transaction? (Points : 1)
Interest Expense 700
Interest Receivable 700
Cash 700
Accounts Receivable 700
Accounts Payable 700
Accounts Receivable 700
Cash 700
Depreciation Expense 700
The income statement for the year 2015 of Fugazi Co. contains the following information:
Revenues $70,000
Expenses:
Salaries and Wages Expense $45,000
Rent Expense 12,000
Advertising Expense 8,000
Supplies Expense 6,000
Utilities Expense 2,500
Insurance Expense 2,000
Total expenses 75,500
Net income (loss) $(5,500)
The entry to close Income Summary to Owner's Capital includes
a debit to Revenue for $70,000.
credits to Expenses totaling $75,500.
a credit to Income Summary for $5,500.
a credit to Owner's Capital for $5,500.