6-4 APPLICATION PROBLEM Finding and correcting errors in accounting records Ervin Watkins has completed the April monthly work sheet for his business, EverClean. The work sheet and general ledger accounts are given below. Mr. Watkins believes that he has made one or more errors in preparing the work sheet. He asks you to help him verify the work sheet. Instructions: 1. Examine the work sheet and the general ledger accounts. Make a list of the errors you find. 2. Prepare a corrected work sheet. 3. Correct any errors you find in the general ledger accounts. EverClean Work Sheet For Month Ended April 30, 20- -- 2 TRIAL BALANCE ADJUSTMENTS INCOME STATEMENT BALANCE SHEET ACCOUNT TITLE DEBIT CREDIT DEMY CREDIT DEBIT CREDIT DEST CREDIT Cash 796500 795 600 Supplies 5000 Prepaid Insurance 63000 (b) 30000 (b) 21000 25000 24000 Accts. Pay-Archer Supplies Ervin Watkins, Capital 50000 580000 50000 580000 Ervin Watkins, Drawing 60000 60000 Income Summary Sales 99000 99000 Insurance Expense (b) 21000 21000 10 Miscellaneous Expense 22500 Supplies Expense b) 30000 22500 30000 12 947000 729000 51000 51000 52500 120000 879600 655000 Net Income 67500 224600 Adjustments Trial Balance Account Title Debit Credit Debit 1 Cash 2 Supplies 3 Prepaid Insurance 4 Accts. Pay.-Archer Supplies Ervin Watkins, Capital 6 Ervin Watkins, Drawing 7 Income Summary B Sales 9 Insurance Expense 10 Miscellaneous Expense Supplies Expense 12 15 Net Loss 241 Select: General Ledger Income Statement Balance Sheet Credit Debit Credit Debit Credit B 9 10 11 112 13 124 S T