Problem-6: Completing the Accounting Cycle

1. Cash received from a customer on account was recorded as $950 instead of $590.
2. A payment of $75 for advertising expense was entered as a debit to Miscellaneous Expense $75 and credit to Cash $75.
3. The first salary payment this month was for $1,900, which included $700 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 $310 was recorded as a debit to Supplies and a credit to Accounts Payable for $310.
5. A cash payment of repair expense on equipment for $96 was recorded as a debit to Equipement $69 and a credit to Cash $69.

Instructions

1. Prepaire 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, 2019.
2. Prepare a correct trial balance.

Solution