Question

Casey Hartwig, CPA, was retained by Blossom Cable to prepare financial statements for the year ended April 30, 2021. Hartwig accumulated all the ledger balances per Blossom’s records and found the following.

BLOSSOM CABLE Trial Balance April 30, 2021
	Debit		Credit
Cash	$3,400
Accounts receivable	2,900
Supplies	810
Equipment	10,000
Accumulated depreciation—equipment			$1,270
Accounts payable			2,200
Salaries payable			570
Unearned revenue			790
S. Spade, capital			10,580
Service revenue			5,460
Salaries expense	2,400
Advertising expense	570
Telephone expense	190
Depreciation expense	600
	$20,870		$20,870

Casey Hartwig reviewed the records and found the following errors.

1.		Cash received from a customer on account was recorded as $920 instead of $290.
2.		A payment of $55 for advertising expense was entered as a debit to Salaries Expense $55 and a credit to Cash $55.
3.		The first salary payment this month was for $1,990, which included $570 of salaries payable on March 31. The payment was recorded as a debit to Salaries Expense $1,990 and a credit to Cash $1,990. (No reversing entries were made on April 1.)
4.		The purchase on account of a printer costing $410 was recorded as a debit to Supplies and a credit to Accounts Payable for $410.
5.		A cash payment of repair expense on equipment for $54 was recorded as a debit to Equipment $45 and a credit to Cash $45.

Prepare an analysis of each error showing the incorrect entry. Items 4 and 5 occurred on April 30, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Prepare an analysis of each error showing the correct entry. Items 4 and 5 occurred on April 30, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Prepare an analysis of each error showing the correcting entry. Items 4 and 5 occurred on April 30, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Prepare a correct trial balance.

Answer 1

Incorrect Entry	Correct Entry	Correcting Entry
Particulars	Debit	Credit	Particulars	Debit	Credit	Particulars	Debit	Credit
Cash	920.00		Cash	290.00		Accounts Receivable	630.00
Accounts Receivable		920.00	Accounts Receivable		290.00	Cash		630.00
Salaries Expense	55.00		Advertisment expense	55.00		Advertisment expense	55.00
Cash		55.00	Cash		55.00	Salaries Expense		55.00
Salaries	1,990.00		Salaries Payable	570.00		Salaries Payable	570.00
Cash		1,990.00	Salaries	1,420.00		Salaries		570.00
			Cash		1,990.00
Supplies	410.00		Equipment	410.00		Equipment	410.00
Accounts Payable		410.00	Accounts Payable		410.00	Supplies		410.00
Equipment	45.00		Repair Expense	54.00		Repair Expense	54.00
Cash		45.00	Cash		54.00	Equipment		45.00
						Cash		9.00

Correct Trial Balance as on 30th April
Particulars	Debit	Credit
Cash	2,761.00
Accounts Receivable	3,530.00
Supplies	400.00
Equipment	10,365.00
Accumalated Depreciation		1,270.00
Accounts Payable		2,200.00
Salaries and Wages Payable		-
Unearned Service Revenue		790.00
Owner Capital		10,580.00
Service Revnue		5,460.00
Salaries and Wages expenses	1,775.00
Advertisment Exp	625.00
Telephone Exp	190.00
Dep Exp	600.00
Repair Exp	54.00
	20,300.00	20,300.00