1. Jamie Hugh, the owner of Fern Designs, prepared the following trial balance at March 31, 2024.Cash$12,930 Accounts Receivable4,230 Supplies800 Equipment7,300 Accounts payable $2,500J. Hugh, capital 24,030J. Hugh, drawings 3,600Service revenue6,750 Advertising expense3,650 Salaries expense350 Totals$36,010$30,130A review shows that Jamie made the following errors in the accounting records:A purchase of $200 of supplies on account was recorded as a credit to Cash. The debit entry was correct.A $100 credit to Accounts Receivable was posted as $1,000.A journal entry to record service revenue of $570 earned on account was not prepared or posted.A journal entry to record the payment of $240 for an advertising expense was correctly prepared but the credit to Cash was posted as a debit. The debit to Advertising Expense was properly posted. (Mainly need help with 4.) Please explain the reason for the answer.Prepare the correct trial balance at March 31, 2024.

Name: 1. Jamie Hugh, the owner of Fern Designs, prepared the following trial
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Description: 1. Jamie Hugh, the owner of Fern Designs, prepared the following trial balance at March 31, 2024.Cash$12,930 Accounts Receivable4,230 Supplies800 Equipment7,300 Accounts payable $2,500J. Hugh, capital 24,030J. Hugh, drawings 3,600Service revenue6,750

Trial Balance is the summary of all the ledgers under one column. All the debit and credit side…

Answered: 1. Jamie Hugh, the owner of Fern…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. Jamie Hugh, the owner of Fern Designs, prepared the following trial balance at March 31, 2024.

Cash	$12,930
Accounts Receivable	4,230
Supplies	800
Equipment	7,300
Accounts payable		$2,500
J. Hugh, capital		24,030
J. Hugh, drawings		3,600
Service revenue	6,750
Advertising expense	3,650
Salaries expense	350
Totals	$36,010	$30,130

A review shows that Jamie made the following errors in the accounting records:

A purchase of $200 of supplies on account was recorded as a credit to Cash. The debit entry was correct.
A $100 credit to Accounts Receivable was posted as $1,000.
A journal entry to record service revenue of $570 earned on account was not prepared or posted.
A journal entry to record the payment of $240 for an advertising expense was correctly prepared but the credit to Cash was posted as a debit. The debit to Advertising Expense was properly posted. (Mainly need help with 4.) Please explain the reason for the answer.

Prepare the correct trial balance at March 31, 2024.

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