On March 1, it was discovered that the following errors took place in journalizing and posting transactions: a. Rent Expense of $4,800 paid for the current month was recorded as a debit to Miscellaneous Expense and
a credit to Rent Expense.
b. The payment of $3,350 from a customer on account was recorded as a debit to Cash and a credit to
Accounts Payable.
Journalize the entries on March 1 to correct the errors. Use two entries to correct the error described in (a). That is, record an entry to reverse the incorrect entry and a second entry to record the correct entry.
Refer to the Chart of Accounts for exact wording of account titles:
General Ledger
ASSETS REVENUE
11 Cash 41 Fees Earned
12 Accounts Receivable 42 Sales Commission
13 Supplies
14 Prepaid Insurance EXPENSES
15 Land
16 Office Equipment 51 Advertising Expense
17 Automobiles 52 Automobile Expense
53 Insurance Expense
LIABILITIES 54 Rent Expense
21 Accounts Payable 55 Salary Expense
22 Unearned Rent 56 Supplies Expense
23 Notes Payable 57 Utilities Expense
24 Salaries Payable 58 Miscellaneous
Expense
EQUITY
31 John Doe Capital
32 John Doe Drawing