Problem

(L. OBJ. 2, 3, 4, 5) Analyzing accounting errors [20-30 min] Bridget Battle has trouble...

(L. OBJ. 2, 3, 4, 5) Analyzing accounting errors [20-30 min]

Bridget Battle has trouble keeping her debits and credits equal. During a recent month, Bridget made the following accounting errors:

a. In preparing the trial balance, Bridger omitted a $5,0O0 note payable.

b. Bridget posted a $1,000 utility expense as $100. The credit to Cash was correct.

c. In recording a $200 payment on account, Bridger debited Supplies instead of Accounts payable.

d. In journalizing a receipt of cash for service revenue, Bridget debited Cash for $50 instead of the correct amount of $500. The credit was correct.

e. Bridget recorded a $340 purchase of supplies on account by debiting Supplies and crediting Accounts payable for $430.

Requirements

1. For each of these errors, state whether total debits equal total credits on the trial balance.

2. Identify each account that has an incorrect balance, and indicate the amount and direction of the error (such as “Accounts receivable $500 too high").

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