Question

Kwik Klean, Inc.’s trial balance shows $96,000 on both debit and credit sides. Kwik Klean’s accountant found the following mistakes:
1. Purchase of supplies $2,000 on account was incorrectly recorded as supplies expense.
2. A $560 deposit from a customer for services to be delivered in the following month was incorrectly recorded as $650.
3. Cash paid for salary expense of $2,500 was incorrectly recorded as salary payable.
4. Borrowed $10,000 from one of the shareholders that was incorrectly recorded as common shares.
5. Paid $3,500 for salary expense was incorrectly recorded as dividends.
Requirements
1. What are the correct debit and credit balances?
2. Does each error change the overall debit and credit balance?
3. What is the impact on each of the Assets, Liabilities, and Shareholders’ Equity accounts due to these errors?


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  • CreatedJuly 08, 2015
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