As the full-time bookkeeper, your job is to make sure all transactions are recorded properly. If there is an error, each correction needs the reason for the change and the effect on each account, whether it is an increase or decrease.
1. What are some examples of transactions that would need to be recorded or journalized?
2. Can you provide an example of a transaction and the journal entry from either Chapter 2 of our textbook or from your current employer?
3. Why is it important to accurately record the transaction you selected?
4. Suppose a co-worker has recorded a cash disbursement twice (Supplies Expense was debited twice for $100 and Cash was credited twice for $100) and wants you to record a correcting entry that will reverse the mistake. The correcting entry will record a debit to the Cash account and a credit to the Supplies account. Would you make this correcting entry? What should you investigate before making a decision about the correcting entry? Are there any other steps you would take to address this issue?
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