1 ) Prepare Trial balance.2 ) Income statement.3 ) Balance sheet The following errors were detected:AccountDebltCredit1. The cash balance is overstated by $5,000.2. Rent expense of $340 was erroneously posted as a credit rather than a debit.3. A S6,800 credit to Service revenue was not posted.4. A $400 debit to Accounts receivable was posted as $40.5. The balance of Utilities expense is understated by S70.6. A S900 purchase of supplies on account was neither journalized nor posted.7. Equipment should be $16,490.Cash6,300Accounts receivable6,000Supplies400Equipment22,300Computers49,000Accounts payable2,800Notes payable18,500Wright, Capital50,000Wright, Drawing4,000Service revenue4,100Salary Expense1,400Rent expense800Advertising expense900Utilities expense800Total91,90075,400

The financial statements of the business includes the income statement and balance sheet of the…

The following errors were detected: Account Debit Credit 1. The cash balance is overstated by $5,000. 2. Rent expense of $340 was erroneously posted as a credit rather than a debi 3. A S6,800 credit to Service revenue was not posted. 4. A $400 debit to Accounts receivable was posted as $40. 5. The balance of Utilities expense is understated by $70. 6. A $900 purchase of supplies on account was neither journalized nor posted. 7. Equipment should be $16,490. Cash 6,300 Accounts receivable 6,000 Supplies 400 Equipment 22.300 Computers 49,000 Accounts payable 2,800 Notes payable 18,500 Wright, Capital 50,000 Wright, Drawing 4,000 Service revenue 4,100 Salary Expense 1,400 Rent expense 800 Advertising expense 900 Utilitles expense 800 Total 91.900 75.400

The following errors were detected: Account Debit Credit 1. The cash balance is overstated by $5,000. 2. Rent expense of $340 was erroneously posted as a credit rather than a debi 3. A S6,800 credit to Service revenue was not posted. 4. A $400 debit to Accounts receivable was posted as $40. 5. The balance of Utilities expense is understated by $70. 6. A $900 purchase of supplies on account was neither journalized nor posted. 7. Equipment should be $16,490. Cash 6,300 Accounts receivable 6,000 Supplies 400 Equipment 22.300 Computers 49,000 Accounts payable 2,800 Notes payable 18,500 Wright, Capital 50,000 Wright, Drawing 4,000 Service revenue 4,100 Salary Expense 1,400 Rent expense 800 Advertising expense 900 Utilitles expense 800 Total 91.900 75.400

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 4DQ: In a cash receipts journal, both the Accounts Receivable Credit column and the Cash Debit column...

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In a cash receipts journal, both the Accounts Receivable Credit column and the Cash Debit column were mistakenly underadded by 700. How will this error be discovered?
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