© 2000 South-Western© 2000 South-WesternEducational PublishingEducational Publishing

JOURNAL PAGE WITH POSTING COMPLETEDJOURNAL PAGE WITH POSTING COMPLETED

Lesson 5-4, page 112Lesson 5-4, page 112

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MEMORANDUM FOR A CORRECTING ENTRYMEMORANDUM FOR A CORRECTING ENTRY

Lesson 5-4, page 116Lesson 5-4, page 116

© 2000 South-Western© 2000 South-WesternEducational PublishingEducational Publishing

JOURNAL ENTRY TO RECORD A CORRECTING ENTRYJOURNAL ENTRY TO RECORD A CORRECTING ENTRY

Lesson 5-4, page 116Lesson 5-4, page 116

November 13. Discovered that a payment of cash for advertising in October was journalized and posted in error as a debit to Miscellaneous Expense instead of Advertising Expense, $120.00. Memorandum No. 45.

1. Which accounts are affected?

Advertising Expense

Miscellaneous Expense

4. How is each amount entered in the accounts?

Expense accounts increase on the debit side.

Expense accounts decrease on the credit side.

3. How is each classification changed?

Expenses are increased.

Expenses are decreased.

2. How is each account classified?

Advertising Expense is an expense account.

Miscellaneous Expense is an expense account. Miscellaneous Expense

Advertising Expense

DebitNormal Balance

DebitNormal Balance

120.00

120.00

© 2000 South-Western© 2000 South-WesternEducational PublishingEducational Publishing

3. Credit Miscellaneous Expense.

JOURNAL ENTRY TO RECORD A CORRECTING ENTRYJOURNAL ENTRY TO RECORD A CORRECTING ENTRY

1. Write the date.

4. Write the source document number.

2. Debit Advertising Expense.

1

3

42

Lesson 5-4, page 116Lesson 5-4, page 116