Wilm Schmidt, the owner of Wilm's Window Washing Services, had difficulty getting the debits to equal credits on the January 31, 2023, trial balance. Wiln's Window Washing Services Trial Balance January 31, 2023 Cash Accounts receivable Prepaid insurance Equipment Accounts payable Wilm Schmidt, capital Wiln Schmidt, withdrawals Service revenues Salaries expense Insurance expense Maintenance expense Utilities expense Total Debit $ 12,300 9,940 3,100 31,000 9,660 32,700 5,900 Credit $ 9,600 52,000 61,500 13,700 5,900 $124,200 $123, 100 The following errors were discovered: a. Schmidt did not post a $4,700 purchase of equipment on credit. b. In posting a $1,750 collection from a credit customer, Schmidt debited Accounts Receivable and credited Cash. c. In posting a cash receipt, Schmidt correctly debited Cash for $2.390 but incorrectly credited Accounts Receivable for $9,390. d. In posting a $8,100 payment on account, Schmidt debited Accounts Payable but forgot to post the credit to Cash. e. In posting the entry for services of $4 200 per
Wilm Schmidt, the owner of Wilm's Window Washing Services, had difficulty getting the debits to equal credits on the January 31, 2023, trial balance. Wiln's Window Washing Services Trial Balance January 31, 2023 Cash Accounts receivable Prepaid insurance Equipment Accounts payable Wilm Schmidt, capital Wiln Schmidt, withdrawals Service revenues Salaries expense Insurance expense Maintenance expense Utilities expense Total Debit $ 12,300 9,940 3,100 31,000 9,660 32,700 5,900 Credit $ 9,600 52,000 61,500 13,700 5,900 $124,200 $123, 100 The following errors were discovered: a. Schmidt did not post a $4,700 purchase of equipment on credit. b. In posting a $1,750 collection from a credit customer, Schmidt debited Accounts Receivable and credited Cash. c. In posting a cash receipt, Schmidt correctly debited Cash for $2.390 but incorrectly credited Accounts Receivable for $9,390. d. In posting a $8,100 payment on account, Schmidt debited Accounts Payable but forgot to post the credit to Cash. e. In posting the entry for services of $4 200 per
Chapter1: Financial Statements And Business Decisions
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