Recording and Posting Correcting Entries An auditor reviewed the accounting records of

Chapter 7, Problem 7-9

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QUESTION:

Recording and Posting Correcting Entries

An auditor reviewed the accounting records of Showbiz Video. The auditor wrote a list of transactions, outlined below, describing the errors discovered in the March records. The general journal for March and a portion of the general ledger are included in your working papers.

Instructions:

1. Record correcting entries on general journal page 22. Use March 31 as the date and Memorandum 50 as the source document for all correcting entries.

2. Some errors will not require correcting entries but will require a general ledger correction. Make the appropriate general ledger corrections.

3. Post all correcting entries to the general ledger accounts.

Compute the amount that Greg Failla, Capital was overstated or understated before the correcting entries were posted.

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QUESTION:

Recording and Posting Correcting Entries

An auditor reviewed the accounting records of Showbiz Video. The auditor wrote a list of transactions, outlined below, describing the errors discovered in the March records. The general journal for March and a portion of the general ledger are included in your working papers.

Instructions:

1. Record correcting entries on general journal page 22. Use March 31 as the date and Memorandum 50 as the source document for all correcting entries.

2. Some errors will not require correcting entries but will require a general ledger correction. Make the appropriate general ledger corrections.

3. Post all correcting entries to the general ledger accounts.

Compute the amount that Greg Failla, Capital was overstated or understated before the correcting entries were posted.

ANSWER:

Step 1 of 4

Correcting entries can be defined as the journal entries made for the purpose of fixing the errors and omissions made by the accountant in the books of accounts. For example: Purchase of asset being recorded as debit to inventory account.

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