Bridget Shine has trouble keeping her debits and credits equal. During a recent month, Bridget made the following accounting errors:
a. In preparing the trial balance, Bridget omitted a $4,000 Notes Receivable. The credit to Cash was correct.
b. Bridget posted a $50 Utilities Expense as $500. The credit to Cash was correct.
c. In recording a $300 payment on account, Bridget debited Furniture instead of Accounts Payable.
d. In journalizing a receipt of cash for service revenue, Bridget debited Cash for $110 instead of the correct amount of $1,100. The credit was correct.
e. Bridget recorded a $320 purchase of office supplies on account by debiting Office Supplies and crediting Accounts Payable for $230.
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 and the amount and direction of the error (such as “Accounts Receivable $500 too high”).