Question

working papers 4-3
journalize each correcting entry discovered during july of the current year. use page 11 of the journal.

transactions:
jul 1 discovered that a transaction for supplies bought last month was journalized and posted in error as a debit to prepaid... of supplies, $110.00. m23.
1 discovered that a transaction for advertising expense for last month was journalized and posted in error as a debit to miscellaneous expense instead of advertising expense, $440.00. m24.

page 11
general journal
date | account title | doc. no. | post. ref. | debit | credit
1 jul.1 | supplies | m23 | | 110.00 |
2 | prepaid insurance | | | | 110.00
3 jul.1 | advertising expense | m24 | | 440.00 |
4 | miscellaneous expense | | | | 440.00

it was also discovered that two posting errors were made in the owner’s capital account. the june 1 entry amount should have been $25,000.00. the june 15 entry included a credit to the capital account for $1,000.00 that was posted in error as a debit. determine what amount should be entered in each lettered cell. (if a cell should have a zero balance, it should be left blank.)

general ledger
account: janet bies, capital | account no. 310
date | item | post. ref. | debit | credit | balance (debit) | balance (credit)
1 jun.1 | | g10 | a | b 2,500.00 | c | d 2,500.00
2 15 | | g10 | e 1,000.00 | f | g | h 1,500.00

a. blank box

Explanation:

Step1: Analyze Jun 1 Entry Error

The Jun 1 entry for owner's capital had an incorrect amount. The correct amount should be $25,000.00, but the credit was $2,500.00. For the debit column (cell A), since owner's capital is a credit - based account (normal balance is credit), a debit entry here would be an error correction. Wait, actually, the Jun 1 entry: the correct credit should be $25,000, but the original entry had a credit of $2,500. But looking at the debit column (cell A), since the transaction was a credit to capital (owner's investment, which is a credit), the debit side (cell A) should be 0 because there was no debit in the correct entry. Wait, no, let's re - examine. The problem says "The June 1 entry amount should have been $25,000.00". The original entry in the ledger has a credit of $2,500.00 (cell B). For the debit column (cell A), since the transaction is an investment (credit to capital), the debit should be 0 (because we are correcting the credit amount, and the debit side was incorrect? Wait, no, the owner's capital account: when the owner invests, it's a credit to capital. So the debit column (cell A) for the Jun 1 entry should be 0, because there was no debit in the correct transaction.

Step2: Confirm Cell A Value

So, for cell A (debit column of Jun 1 entry in Janet Bies, Capital account), since the correct transaction is a credit to capital (no debit), the amount should be 0.

Answer:

0