Horace Culpepper, CPA, was retained by Pulsar Cable to prepare financial statements for April 2022. Horace accumulated all the ledger balances per Pulsar's records and found the following.

Horace Culpepper then reviewed the records and found the following errors.

1. Cash received from a customer on account was recorded as $950 instead of $590.
2. A payment of $75 for advertising expense was entered as a debit to Miscellaneous Expense $75 and a credit to Cash $75.
3. The first salary payment in April was for $1,700, which included $700 of salaries payable on March 31. The payment was recorded as a debit to Salaries and Wages Expense $1,700 and a credit to Cash $1,700. (No reversing entries were made on April 1.)
4. The purchase on account of a printer costing $510 was recorded as a debit to Supplies and a credit to Accounts Payable for $510.
5. A cash payment of repair expense on equipment for $96 was recorded as a debit to Equipment $69 and a credit to Cash $69.

Instructions
a. Prepare an analysis of each error showing (1) the incorrect entry, (2) the correct entry, and (3) the correcting entry. Items 4 and 5 occurred on April 30, 2022.
b. Prepare a correct trial balance.

Transcribed Image Text:

Cash Accounts Receivable Supplies Pulsar Cable Trial Balance April 30, 2022 Equipment Accumulated Depreciation Equip. Accounts Payable Salaries and Wages Payable Unearned Service Revenue Owner's Capital Service Revenue Salaries and Wages Expense Advertising Expense Miscellaneous Expense Depreciation Expense Debit $4,100 3,200 800 10,800 3,300 600 290 500 $23,590 Credit $ 1,350 2,100 700 890 12,900 5,650 $23,590