Errors in recording transactions?

Question

A number of errors in recording transactions are described below. Present the necessary correcting entries.

a.) A P2,000 payment to advertising expense was charged to Supplies.
b.) A cash  withdrawal of P3,000 was recorded as a debit to C.B. Davis, Capital and a credit to Cash.
c.) Cash of P3,400 received from a customer on account was recorded as a debit to Cash and a credit to Accounts Receivable for 4,300.
d.) Equipment of P2,000 purchased for cash was recorded as debit to Buildings and a credit to Accounts Payable.
e.) Rent of P1,500 for the current month was recorded as a debit to Prepaid Insurance and a credit to Cash.

Sandy · Accepted Answer

a.) A P2,000 payment to advertising expense was charged to Supplies.
Dr Advertising expense P2,000
Cr Supplies P2,000

b.) A cash withdrawal of P3,000 was recorded as a debit to C.B. Davis, Capital and a credit to Cash.
Dr C.B. Davis, Drawing P3,000
Cr C.B. Davis, Capital P3,000

c.) Cash of P3,400 received from a customer on account was recorded as a debit to Cash and a credit to Accounts Receivable for 4,300.
Dr Accounts Receivable P900
Cr Cash P900

d.) Equipment of P2,000 purchased for cash was recorded as debit to Buildings and a credit to Accounts Payable.
Dr Equipment P2,000
Cr Buildings P2,000

Dr Accounts Payable P2,000
Cr Cash P2,000

e.) Rent of P1,500 for the current month was recorded as a debit to Prepaid Insurance and a credit to Cash
Dr Rent expense P1,500
Cr Prepaid Insurance P1,500

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Errors in recording transactions?

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