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Instructions On May 3, it was discovered that the following errors took place in journalizing and posting transactions: a. Insurance of $18,000 paid for the current year was recorded as a debit to Insurance Expense and a credit to Prepaid Insurance. b. A withdrawal of $10,000 by Brian Phillips, owner of the business, was recorded as a debit to Wages Expense and a credit to Cash. Journalize the entries on May 3 to correct the errors. Use two entries to correct the error described in a. (That is, record an entry to reverse the incorrect entry and a second entry to record the correct entry) Refer to the Chart of Accounts for exact wording of account titles Instructions Chart of Accounts CHART OF ACCOUNTS Heritage Realty General Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Supplies REVENUE 41 Fees Earned 42 Sales Commission 14 Prepaid Insurance EXPENSES 15 Land 16 Equipment 17 Truck 51 Advertising Expense 52 Truck Expense 53 Insurance Expense 54 Rent Expense 55 Wages Expense 56 Supplies Expense 57 Utilities Expense 58 Miscellaneous Expense LIABILITIES 21 Accounts Payable 22 Unearned Rent 23 Notes Payable 24 Wages Payable - TELETU Instructions Chart of Accounts Journal Instructions Chart of Accounts Journal Journalize the entries on May 3 to correct the errors. Use two entries to correct the error described in a. (That is record an entry to reverse the incorrect entry and a second entry to record the correct entry.) Refer to the Chart of Accounts for exact wording of account titles. PAGE 10 JOURNAL DESCRIPTION POST REE DEBIT CREDIT

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