The following errors took place in journalizing and posting transactions: EXERCISE 2-22 Entries to correct errors a. A $550 purchase of supplies Expense and a credit to Prepaid Rent. b. Cash of $3,750 received on account was recorded as a debit to Accounts Payable and a credit to Cash on account was recorded as a debit to Miscellaneous Objective 6 Journalize the entries to correct the errors. Omit explanations PROBLEM 2-6A Corrected trial balance Onyx Videography has the following trial balance as of August 31, 2006: Cash 4,700 Objectives 5, 6 Accounts Recevable 8,450 Supplies Prepald Insurance Equipment Notes Payable 1,464 140 36,000 16,500 SPREADSHEET Accounts Payable Jerri Orr, Capital Jerri Orr, Drawing 3,470 1. Total of Debit Column: $156,000 19,800 7.200 118,680 Fees Earned Wages Expense Rent Expense 68,000 13,900 Advertising Expense Gas, Electricity, and Water Expense 630 3,780 144,264 158,450 The debit and credit totals are not equal as a result of the following errors: a. The balance of cash was overstated by $3,500. 4c02 47-100.qxd 11/10/03 6:43 PM Page 91 91 Chapter 2 Analyzing Transactions b. A cash receipt of $2,100 was posted as a credit to Cash of $1,200 c. A debit of $1,750 to Accounts Receivable was not posted. d. A return of $115 of defective supplies was erroneously posted to Supplies e. An insurance policy acquired at a cost of $500 was as a $151 credit posted as a credit to Prepaid Insurance. f. The balance of Notes Payable g. A credit of $250 in Accounts Payable account was determined. h. A debit of $1,800 for a withdrawal by the owner was Orr, Capital. i. The balance of $6,300 in Advertising Expense was overstated by $4,500. overlooked when the balance of the was posted as a debit to Jerri was entered as $630 in the trial balance. j. Miscellaneous Expense, with a balance of $1,680, was omitted from the trial balance Instructions 1. Prepare a corrected trial balance as of August 31 of the current year. Does the fact that the trial balance in (1) is balanced mean that there are 2. no errors in the accounts? Explain