Ilana Mathers, CPA, was hired by Interactive Computer Installations to prepare its financial statements for March 2017. Using all the ledger balances in the owner's records, Ilana put together the following trial balance.

Ilana then reviewed the records and found the following items:
1. The purchase on account of equipment for $5,100 on March 1 was recorded as a debit to Supplies and a credit to Accounts Payable, both for $5,200.
2. March rent of $2,050 was paid on March 2. The company recorded this as a debit to Miscellaneous Expense and a credit to Cash, both for $2,050.
3. Cash of $1,735 was received from a customer on account. It was recorded as a debit to Cash and a credit to Service Revenue, both for $1,735.
4. A payment of a $575 account payable was entered as a debit to Cash and a credit to Accounts Receivable, both for $575.
5. The first salary payment made in March was for $3,000, which included $750 of salaries payable on February 28. The payment was recorded as a debit to Salaries Payable of $3,000 and a credit to Cash of $3,000. (No reversing entries were made on March 1.)
6. The owner, Maurice Hubert, paid himself $1,800 and recorded this as salary expense.
7. The depreciation expense for the month of March has not been recorded. All of the company's equipment is expected to have a five year useful life.
Instructions
(a) Prepare an analysis of any errors and show
(1) The incorrect entry,
(2) The correct entry, and
(3) The correcting entry.
(b) Prepare a correct trial balance.
Taking It Further
Explain how the company's financial statements would be incorrect if error 6 was not corrected and why it is important to correct this error.

NTERACTIVE COMPUTER INSTALLATIONS Trial Balance March 31, 2017 Debit S 6,680 3,850 5,900 12,620 Credit Cash Accounts receivable Supplies Equipment Accumulated depreciation-equipment Accounts payable Salaries payable Unearned revenue M. Hubert, capital Service revenue Miscellaneous expense Salaries expense Totals S 6,000 5,330 2,250 4,955 15,375 7,800 3,360 4,800 S39,460 $39,460