Danielle Sheehan has trouble keeping her debits and credits equal. During a recent month, Danielle made the following errors:
a. Danielle recorded a $550 payment of rent by debiting rent expense for $55 and crediting Cash for $55.
b. In recording a $1,000 payment on account, Danielle debited Accounts Receivable and credited Cash.
c. Danielle recorded the receipt of cash for service revenue by debiting Cash for $170 instead of the correct amount of $710. Danielle also credited Service Revenue for $170, the incorrect amount.
d. Danielle recorded a $350 purchase of supplies on account by debiting Accounts Payable and crediting Supplies.
e. In preparing the trial balance, Danielle omitted a $40,000 note payable.

Requirements
1. For each of these errors, state whether Danielle’s mistake would cause the total debits and total credits on the trial balance to be unequal.
2. Identify each account with an incorrect balance, and indicate the amount and direction of the error.
Effect on Trial Balance .......... Amount(s) Misstated
Total Debits = Total Credits .... Cash
..............$495 too high
..............Rent expense
.............$495 too low