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prepare an analysis of each error showing 1 the incorrect entry 2 the correct entry 593171

Dao Vang, CPA, was retained by Universal Cable to prepare financial statements for April 2014. Vang accumulated all the ledger balances per Universal”s records and found the following.

UNIVERSAL CABLE Trial Balance April 30, 2014

Cash

Accounts Receivable Supplies

Equipment

Debit

Credit

$ 4,100
3,200
800
10,600

Accumulated Depreciation—Equip.

$ 1,350

Accounts Payable

2,100

Salaries and Wages Payable

700

Unearned Service Revenue

890

Owner”s Capital

12,900

Service Revenue

5,450

Salaries and Wages Expense

3,300

Advertising Expense

600

Miscellaneous Expense

290

Depreciation Expense

500

$23,390

$23,390

Dao Vang 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 this month was for $1,900, which included $700 of salaries payable on March 31. The payment was recorded as a debit to Salaries and Wages Expense $1,900 and a credit to Cash $1,900. (No reversing entries were made on April 1.)

4. The purchase on account of a printer costing $310 was recorded as a debit to Supplies and a credit to Accounts Payable for $310.

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, 2014.

(b) Prepare a correct trial balance.

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