Correcting Errors 2

$2000 paid for Machinery repairs is entered in the Machinery account.

What kind of error is this?

• commission

• compensating

• original entry

• principle

The balance of the Discount Allowed account, $200, is entered on the wrong side of the trial balance. This is the only error.

Which Suspense account entry will make the trial balance totals agree?

• credit $200

• credit $400

• debit $200

• debit $400

A trial balance does not agree and the difference has been entered in a Suspense account. It is then found that a receipt of $120 from Natasha, a credit customer, has been recorded correctly in the cash book but debited in the Sales account.

What will be the correcting journal entry?

• debit Natasha $120 credit Suspense $120

• debit Natasha $120 debit Sales $120 credit Suspense $240

• debit Suspense $120 credit Sales $120

• debit Suspense $240 credit Natasha $120 credit Sales $120

A business's expenses include $300 for electricity used in the owner's home.

What adjustment is necessary?

• account debited electricity $300

  account credited Income Statement $300

• account debited Income Statement $300

  account credited electricity $300

• account debited drawings $300

  account credited electricity $300

• account debited electricity $300

  account credited drawings $300

A trader purchased stationery for office use. This was entered in the ledger as purchase of goods for resale.

Which journal entry will correct this error?

• account debited purchases

  account credited stationary

• account debited stationary

  account credited purchases

• account debited stationary

  account credited sales

• account debited sales

  account credited purchases

Sales returns of $90 were incorrectly credited to the Sales Returns account. A Suspense account was opened as a result of this error.

Which journal entry will correct this error?

• account debited sales returns $90

  account credited suspense $90

• account debited suspense $90

  account credited sales returns $90

• account debited sales returns $180

  account credited suspense $180

• account debited suspense $180

  account credited sales returns $180