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In: Accounting

Crane Cable Trial Balance April 30, 2020 Debit Credit Cash $4,200 Accounts Receivable 3,100 Supplies 900...

Crane Cable
Trial Balance
April 30, 2020

Debit

Credit
Cash

$4,200
Accounts Receivable

3,100
Supplies

900
Equipment

10,500
Accumulated Depreciation―Equip.

$1,360
Accounts Payable

2,300
Salaries and Wages Payable

700
Unearned Service Revenue

900
Owner’s Capital

13,040
Service Revenue

5,500
Salaries and Wages Expense

3,500
Advertising Expense

700
Miscellaneous Expense

350
Depreciation Expense

550

$23,800

$23,800


Horace Culpepper reviewed the records and found the following errors.

1. Cash received from a customer on account was recorded as $630 instead of $580.
2. A payment of $71 for advertising expense was entered as a debit to Miscellaneous Expense $71 and a credit to Cash $71.
3. The first salary payment this month was for $2,000, which included $700 of salaries payable on March 31. The payment was recorded as a debit to Salaries and Wages Expense $2,000 and a credit to Cash $2,000. (No reversing entries were made on April 1.)
4. The purchase on account of a printer costing $400 was recorded as a debit to Supplies and a credit to Accounts Payable for $400.
5. A cash payment of repair expense on equipment for $71 was recorded as a debit to Equipment $30 and a credit to Cash $30.

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, 2017

Solutions

Expert Solution

The Incorrect Entry The correct Entry The correcting Entry
Date Accounts title & Explanations Debit Credit Date Accounts title & Explanations Debit Credit Date Accounts title & Explanations Debit Credit
Amount in $ Amount in $ Amount in $ Amount in $ Amount in $ Amount in $
Sr. No.1 Cash 630 Sr. No.1 Cash 580 Sr. No.1 Accounts receivable 50
Accounts Receivable 630 Accounts Receivable 580 Cash 50
To record the cash received from customer To record the cash received from customer To record the correcting entry
Sr. No. 2 Miscellaneous expense 71 Sr. No. 2 Advertising expense 71 Sr. No. 2 Advertising expense 71
Cash 71 Cash 71 Miscellaneous expense 71
To record the payment towards the miscellaneous expense To record the payment towards the advertising expense To record the correcting entry
Sr. No. 3 Salary and wages Expense 2000 Sr. No. 3 Salary & Wages Expense 1300 Sr. No. 3 Salaries Payable 700
Cash 2000 Salaries Payable 700 Salary & Wages Expense 700
To record the payment for salary and wages Cash 2000 To record the correcting entry
To record the payment for salary and wages
Sr. No. 4 / Apr-30 Supplies 400 Sr. No. 4 / Apr-30 Printer(Office equipment) 400 Sr. No. 4 / Apr-30 Printer(Office equipment) 400
Accounts Payable 400 Accounts Payable 400 Supplies 400
To record the purchase of supplies on account To record the purchase of printer on account To record the correcting entry
Sr. No. 5/ Apr-30 Equipment 30 Sr. No. 5/ Apr-30 Repair Expense 71 Sr. No. 5/ Apr-30 Repair Expense 71
Cash 30 Cash 71 Equipment 30
To record the payment towards Equipment To record the payment towards the repair on equipment Cash 41
To record the correcting entry
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ekkarill92 answered 2 years ago
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