Dao Vang, CPA, was retained by Universal Cable to prepare financial statements for April 2015. Vang accumulated all the ledger balances per Universal’s records and found the following. UNIVERSAL CABLE Trial Balance April 30, 2015 Debit Credit Cash $4,024 Accounts Receivable 3,303 Supplies 746 Equipment 10,682 Accumulated Depreciation-Equip. $1,350 Accounts Payable 2,047 Salaries and Wages Payable 723 Unearned Service Revenue 881 Common Stock 8,762 Retained Earnings 3,691 Service Revenue 5,867 Salaries and Wages Expense 3,202 Advertising Expense 583 Miscellaneous Expense 260 Depreciation Expense 521 $23,321 $23,321 Dao Vang reviewed the records and found the following errors. 1. Cash received from a customer on account was recorded as $830 instead of $380. 2. A payment of $76 for advertising expense was entered as a debit to Miscellaneous Expense $76 and a credit to Cash $76. 3. The first salary payment this month was for $1,899, which included $715 of salaries payable on March 31. The payment was recorded as a debit to Salaries and Wages Expense $1,899 and a credit to Cash $1,899. (No reversing entries were made on April 1.) 4. The purchase on account of a printer costing $238 was recorded as a debit to Supplies and a credit to Accounts Payable for $238. 5. A cash payment of repair expense on equipment for $72 was recorded as a debit to Equipment $27 and a credit to Cash $27. Prepare an analysis of each error showing the incorrect entry, the correct entry, and the correcting entry. Items 4 and 5 occurred on April 30, 2015.
Dao Vang, CPA, was retained by Universal Cable to prepare financial statements for April 2015. Vang accumulated all the ledger balances per Universal’s records and found the following.
UNIVERSAL CABLE
April 30, 2015
Debit
Credit
Cash
$4,024
Accounts Receivable
3,303
Supplies
746
Equipment
10,682
$1,350
Accounts Payable
2,047
Salaries and Wages Payable
723
Unearned Service Revenue
881
Common Stock
8,762
3,691
Service Revenue
5,867
Salaries and Wages Expense
3,202
Advertising Expense
583
Miscellaneous Expense
260
Depreciation Expense
521
$23,321
$23,321
Dao Vang reviewed the records and found the following errors.
1.
Cash received from a customer on account was recorded as $830 instead of $380.
2.
A payment of $76 for advertising expense was entered as a debit to Miscellaneous Expense $76 and a credit to Cash $76.
3.
The first salary payment this month was for $1,899, which included $715 of salaries payable on March 31. The payment was recorded as a debit to Salaries and Wages Expense $1,899 and a credit to Cash $1,899. (No reversing entries were made on April 1.)
4.
The purchase on account of a printer costing $238 was recorded as a debit to Supplies and a credit to Accounts Payable for $238.
5.
A cash payment of repair expense on equipment for $72 was recorded as a debit to Equipment $27 and a credit to Cash $27.
Prepare an analysis of each error showing the incorrect entry, the correct entry, and the correcting entry. Items 4 and 5 occurred on April 30, 2015.
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