Homework Help is Here – Start Your Trial Now!
Business
Accounting
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, 2020 b. Prepare a correct trial balance.

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, 2020 b. Prepare a correct trial balance.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Instrutcions

a. 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, 2020

b. Prepare a correct trial balance. (Trial Balance $22,890)

P4.6A (LO 3) Horace Culpepper, CPA, was retained by Pulsar Cable to prepare financial statements for April 2020. Horace accumulated all the ledger balances per Pulsar's records and found the following. Analyze errors and prepare correcting entries and trial balance. Pulsar Cable Trial Balance Аpril 30, 2020 Debit Credit Cash $ 4,100 Accounts Receivable 3,200 Supplies Equipment Accumulated Depreciation-Equip. Accounts Payable Salaries and Wages Payable 800 10,800 S 1,350 2,100 700 Unearned Service Revenue 890 Owner's Capital 12,900 Service Revenue 5,650 Salaries and Wages Expense Advertising Expense Miscellaneous Expense Depreciation Expense 3,300 600 290 500 $23,590 $23,590 Horace Culpepper then reviewed the records and found the following errors. 1. Cash received from a customer on account was recorded as S950 instead of $590. 2. A payment of $75 for advertising expense was entered as a debit to Miscellaneous Expense $75 and a credit to Cash $75. 3. The first salary payment in April was for $1,900, which included $900 of salaries payable on March 31. The payment was recorded as a debit to Salaries and Wages Expense $1,900 and a credit to Cash $1,900. (No reversing entries were made on April 1.) 4. The purchase on account of a printer costing $510 was recorded as a debit to Supplies and a credit to Accounts Payable for $510. 5. A cash payment of repair expense on equipment for $96 was recorded as a debit to Equipment $69 and a credit to Cash $69. Instructions a. 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, 2020. b. Prepare a correct trial balance. b. Trial balance $22,890
Transcribed Image Text:P4.6A (LO 3) Horace Culpepper, CPA, was retained by Pulsar Cable to prepare financial statements for April 2020. Horace accumulated all the ledger balances per Pulsar's records and found the following. Analyze errors and prepare correcting entries and trial balance. Pulsar Cable Trial Balance Аpril 30, 2020 Debit Credit Cash $ 4,100 Accounts Receivable 3,200 Supplies Equipment Accumulated Depreciation-Equip. Accounts Payable Salaries and Wages Payable 800 10,800 S 1,350 2,100 700 Unearned Service Revenue 890 Owner's Capital 12,900 Service Revenue 5,650 Salaries and Wages Expense Advertising Expense Miscellaneous Expense Depreciation Expense 3,300 600 290 500 $23,590 $23,590 Horace Culpepper then reviewed the records and found the following errors. 1. Cash received from a customer on account was recorded as S950 instead of $590. 2. A payment of $75 for advertising expense was entered as a debit to Miscellaneous Expense $75 and a credit to Cash $75. 3. The first salary payment in April was for $1,900, which included $900 of salaries payable on March 31. The payment was recorded as a debit to Salaries and Wages Expense $1,900 and a credit to Cash $1,900. (No reversing entries were made on April 1.) 4. The purchase on account of a printer costing $510 was recorded as a debit to Supplies and a credit to Accounts Payable for $510. 5. A cash payment of repair expense on equipment for $96 was recorded as a debit to Equipment $69 and a credit to Cash $69. Instructions a. 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, 2020. b. Prepare a correct trial balance. b. Trial balance $22,890
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 7 steps with 13 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting Changes and Error Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS