The closing balance sheet items are given below for Jason Woodstock in accounting equation form as at 30 June 2018. Transactions for the following month of July are also given.

Transactions for July 2018 were as follows.

Required
a. Prepare worksheet entries for the business transactions for the month ended 31 July 2018.
b. At the end of July, Jason realised that the customer invoice sent on 5 July 2018 was recorded incorrectly. The correct amount should be $6500. Explain what type of error Jason made and explain the impact of this error on the balance sheet and the statement of profit or loss.

Transcribed Image Text:

Assets Cash at bank + Accounts receivable $39 400 $2800 Liabilities + Equity = Accounts payable + Capital + $41000 11 $1.200