$1.$ Match the following errors on the left with the type of error on the right.

$\_\_\_1.$ A cash sale for $$700$ was recorded as $$7,000.$

$\_\_\_2.$ Annual depreciation was calculated using a useful life of $8$ years instead of $6$ years.

$\_\_\_3.$ A purchase of supplies was never booked.

$\_\_\_4.$ A $$740$ customer check was recorded as $$470.$

$\_\_\_5.$ Payment for an ad was debited to Utilities Expense.

$\_\_\_6.$ At year end, no adjusting entry was recorded for annual depreciation.

$\_\_\_7.$ On March $1,$ a $$1,200$ check to pay the premium for a $24-$month policy was debited to Prepaid Insurance. On December $31,$ the adjusting entry recognized insurance expense of $$450.$

a$.$ Omission

b$.$ Accrual or deferral error

c$.$ Classification error

d$.$ Arithmetic mistake

e$.$ Use of incorrect accounting principle

f$.$ Use of improper accounting estimate

g$.$ Transposition error

h$.$ Slide error

i$.$ Posting error

$2.$ Match each of the following errors on the left with the type of error on the right.

$\_\_\_1.$ A $$7,000$ equipment purchase booked as $$700.$

$\_\_\_2.$ A $$1,000$ equipment purchase debited to Supplies.

$\_\_\_3.$ Four cash accounts with balances of $$1,000,$ $$4,200,$ $$3,100$ and $$1,800$ are totaled and entered as $$10,000.$

$\_\_\_4.$ GrowCo, which normally takes $2\%$ of accounts receivable as bad debt, takes $3\%$ this year.

$\_\_\_5.$ On Oct. $1,$ a firm receives $$1,200$ for $12$ months$$ rent and credits Rent Revenue. The year$-$end adjusting entry debits Rent Revenue and credits Rent Received In Advance for $$300.$ a$.$ Omission

b$.$ Accrual or deferral error

c$.$ Classification error

d$.$ Arithmetic mistake

e$.$ Use of incorrect accounting principle

f$.$ Use of improper accounting estimate

g$.$ Transposition error

h$.$ Slide error

i$.$ Posting error

SECTION $2$THE BANK RECONCILIATION

$1.$ Indicate for each of the following whether you must adjust the bank balance $($Bank$)$ or ledger Cash account $($Book$)$ in your monthly reconciliation.

a$.$ A debit memo

b$.$ A deposit in transit

c$.$ A bank service charge

d$.$ A credit memo

e$.$ An NSF check

f$.$ An outstanding check

g$.$ Unrecorded interest

h$.$ Collection by the bank of a note receivable from a customer with accrued interest

$2.$ Below are items for October $200$X that you are seeing for the first time.

a$.$ Indicate with an X whether each item should be added to or subtracted from the bank balance, book balance, or neither $($i$.$e$.,$ it does not affect the bank reconciliation$).$

Bank balance Book balance Not

used

Add Deduct Add Deduct

a$.$ Interest earned on cash in the bank

b$.$ Bank service charge

c$.$ NSF check from a customer

d$.$ A night deposit made on October $31$ when the bank was closed

e$.$ Checks written and mailed October $31$

f$.$ An October $12$ deposit appearing on the bank statement as made on October $13$

g$.$ Another firm$$s check charged to yours

h$.$ Payment of a phone bill that appears on the bank statement but never recorded

i$.$ Collection of principal and interest on a customer$$s note collected by the bank

b$.$ Prepare the journal entries to conform the ledger Cash account balance with the reconciled bank balance as of October $31.$

$3.$ Fiori publishes ratings and reviews of hotels and restaurants for traveling salespeople. As of June $31,$ Fiori$$s ledger Cash balance is $$31,466.$ The June bank statement balance is $$70,616,$ and includes the following items.

$$ Bank service charge for June, $$50$

$$ NSF check returned with June bank statement, $$2,300$

$$ Note collected for your company by the bank in June, $$25,000$

$$ Interest on note collected by the bank in June, $$2,500$

$$ Outstanding checks as of the end of June, $$21,000$

$$ Deposit in transit at the end of June, $$7,000$

a$.$ Prepare Fiori$$s June bank reconciliation.

b$.$ Prepare the journal entries to conform Fiori$$s ledger Cash account balance with the reconciled bank balance as of June $30.$

$4.$ On July $31,$ Reed Co$$s ledger Cash account balance is $$25,110,$ its bank statement balance, $$27,620.$ Use the data below to reconcile the two balances as of July $31,20$X$9$:

$$ Checks outstanding of $$6,300$

$$ Check #$244$ to pay the June gas bill was correctly written for $$270,$ but recorded on Reed$$s books as $$720$

$$ $$60$ for a safe$-$deposit box$$but Reed does not rent one

$$ A debit memorandum for $$200$ for a $$175$ NSF check and $$25$ bank NSF fee

$$ A $$40$ debit memorandum for bank service Reed is seeing for the first time

$$ A July $31$ night deposit of that day$$s cash receipts of $$3,940$ that is not on the bank statement

a$.$ Prepare Reed Co$$s bank reconciliation for July $31,20$X$9.$

b$.$ Prepare the journal entries required to conform the company$$s book balance with the reconciled bank balance as of July $31,20$X$9.$

$5.$ Below is Dekin Company$$s September check register and September $30$ bank statement. Use the information to prepare Dekin$$s September bank reconciliation and adjusting journal entries.

SECTION $3$FINDING AND CORRECTING ERRORS USING THE UNADJUSTED TRIAL BALANCE

$1.$ In the trial balance below, total debits do not equal total credit