Susan Battle has trouble keeping her debits and credits equal. During a recent month, Susan made the following errors: a.In preparing the trial balance, Susan omitted a $6,600 note payable. b.Susan recorded a $120 purchase of supplies on account by debiting Supplies and crediting Accounts Payable for $210. c.In recording a $240 payment on account, Susan debited Supplies instead of Accounts Payable. d. In journalizing a receipt of cash from service revenue, Susan debited Cash for $90 instead of the correct amount of $900. The credit was correct. e. Susan posted a $1,000 utility expense as $100. The credit to Cash was correct. Required 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").

Susan Battle has trouble keeping her debits and credits equal. During a recent month, Susan made the following errors: a.In preparing the trial balance, Susan omitted a $6,600 note payable. b.Susan recorded a $120 purchase of supplies on account by debiting Supplies and crediting Accounts Payable for $210. c.In recording a $240 payment on account, Susan debited Supplies instead of Accounts Payable. d. In journalizing a receipt of cash from service revenue, Susan debited Cash for $90 instead of the correct amount of $900. The credit was correct. e. Susan posted a $1,000 utility expense as $100. The credit to Cash was correct. Required 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").

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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