James Cyr has trouble keeping his debits and credits equal. During a recent month, James made the following errors:

a. James recorded a $750 payment of rent by debiting Rent Expense for $75 and crediting Cash for $75.

b. In recording a $300 payment on account, James debited Accounts Receivable and credited Cash.

c. James recorded the receipt of cash for service revenue by debiting Cash for $320 instead of the correct amount of $230. James also credited Service Revenue for $320, the incorrect amount.

d. James posted a $225 purchase of supplies on account by debiting Accounts Payable and crediting Supplies.

e. In preparing the trial balance, James omitted a $30,000 note payable.

Requirements

1. For each of these errors, state whether James' 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 _____________ Account(s) Misstated

Total debits = Total credits ..................... Cash

............................................. $675 too high

............................................. Rent Expense

.............................................. $675 too low