To prepare financial statements for the month of March 2014
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.
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