Silas Melrose has trouble keeping the company’s debits and credits equal. During a recent month, Melrose made the following accounting errors: 

a. In preparing the trial balance, Melrose omitted a $10,000 Notes Payable. The debit to Cash was correct. 

b. Melrose posted a $2,000 Utilities Expense as $200. The credit to Cash was correct. c. In recording a $400 payment on account, Melrose debited Furniture instead of Accounts Payable. 

d. In journalizing a receipt of cash for service revenue, Melrose debited Cash for $60 instead of the correct amount of $600. The credit was correct. 

e. Melrose recorded a $650 purchase of supplies on account by debiting Supplies for $560 and crediting Accounts Payable for $560.

Requirements 

1. For each of these errors, state whether total debits equal total credits on the trial balance. 

2. Identify each account that has an incorrect balance, the amount, and if the account is overstated or understated (e.g., “Accounts Receivable $500 overstated”).