CORRECTING ENTRIES:

A. The following transactions have been erroneously journalized and posted.

1. Collection from customers on account for P 20,000 has been recorded by a debit
to Accounts receivable and credit to Cash.
Cash 20,000
Accounts Receivable 20,000
2. Payment to current month’s electric bill for P 15,000 has been recorded by a
debit to Repairs expense P 1,500 and credit to cash P 1,500.
Utilities Expense 15,000
Cash 15,000
3. P 6,500 cash withdrawn by the owner for personal use was debited to Owner’s
Capital and credit Cash.
Owner’s Withdrawal 6,500
Cash 6,500
4. Payment to suppliers on account for P 13, 456 was recorded as a credit to cash
for P 3,456 and debit to accounts receivable for P 3,456.
Accounts Payable 13,456
Cash 13,456
5. Notice of telephone bill received for the current month for P 5,800 was debited to
Accounts receivable for P 5,800 and credit Cash for P 5,800.
Utilities Expense 5,800
Accounts Payable 5,800
6. Supplies purchased on account for P 1,750 was recorded by debiting Prepaid
insurance.
Supplies 1,750
Accounts Payable 1,750
7. Cash received from a customer on account for P 48,000 was erroneously
recorded as P 84,000.
Cash 48,000
Accounts Receivable 48,000
8. Services rendered for cash for P 10,000 was recorded as a credit to Owner’s
Capital for P 10,000.
Cash 10,000
Services Revenue 10,000

9. Additional cash investment by the owner for P 125,000 has been recorded as
debit to cash for P 12,500 and credit to Owner’s Drawing for P 12,500.

10. Payment to creditors on account for P 9,580 has been recorded by a debit to
Cash and credit to Accounts payable.

11. Payment of one fourth of the P 100,000 notes payable was recorded as P
35,000.

12. Utilities expense for the month but payable next month for P 3,590 was recorded
as Rent expense for P 359 and credit cash P 359.