To prepare financial statements for the month of March 2014. Mona accumulated all the ledger balances from the business records and found the following:
Mona reviewed the records and found the following errors:
1. Cash received from a customer on account was recorded as $570 instead ofS750.
2. The purchase, on account, of a scanner that cost S900 was recorded as a debit to Supplies and a credit to Accounts Payable for $900.
3. A payment of$30 for advertising expense was entered as a debit to Utilities Expense, $30 and a credit to Cash, $30.
4. The first salary payment this month was for $1,800, which included S600 of salaries and wages payable on
February 28. The payment was recorded as a debit to Salaries and Wages Expense, $1,800 and a credit to Cash of $1,800. The business does not use reversing entries.
5. A cash payment for maintenance and repairs expense on equipment for S90 was recorded as a debit to Equipment, $90, and a credit to Cash, S90.
Inst ructions
(a) Prepare an analysis of each error that shows (1) the incorrect entry, (2) the correct entry, and (3) the correcting entry.
(b) Prepare a corrected trial balance.

  • CreatedSeptember 18, 2015
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