Question
Crane Cable
Trial Balance
April 30, 2020
Debit
Credit
$4,200
3,100
900
10,500
$1,360
2,300
700
900
13,040
5,500
3,500
700
350
550
$23,800
$23,800
Horace Culpepper reviewed the records and found the following errors.
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, 2017
Crane Cable
Trial Balance
April 30, 2020
Debit
Credit
Cash
$4,200
Accounts Receivable
3,100
Supplies
900
Equipment
10,500
Accumulated DepreciationEquip.
$1,360
Accounts Payable
2,300
Salaries and Wages Payable
700
Unearned Service Revenue
900
Owner’s Capital
13,040
Service Revenue
5,500
Salaries and Wages Expense
3,500
Advertising Expense
700
Miscellaneous Expense
350
Depreciation Expense
550
$23,800
$23,800
Explanation / Answer
The Incorrect Entry The correct Entry The correcting Entry Date Accounts title & Explanations Debit Credit Date Accounts title & Explanations Debit Credit Date Accounts title & Explanations Debit Credit Amount in $ Amount in $ Amount in $ Amount in $ Amount in $ Amount in $ Sr. No.1 Cash 630 Sr. No.1 Cash 580 Sr. No.1 Accounts receivable 50 Accounts Receivable 630 Accounts Receivable 580 Cash 50 To record the cash received from customer To record the cash received from customer To record the correcting entry Sr. No. 2 Miscellaneous expense 71 Sr. No. 2 Advertising expense 71 Sr. No. 2 Advertising expense 71 Cash 71 Cash 71 Miscellaneous expense 71 To record the payment towards the miscellaneous expense To record the payment towards the advertising expense To record the correcting entry Sr. No. 3 Salary and wages Expense 2000 Sr. No. 3 Salary & Wages Expense 1300 Sr. No. 3 Salaries Payable 700 Cash 2000 Salaries Payable 700 Salary & Wages Expense 700 To record the payment for salary and wages Cash 2000 To record the correcting entry To record the payment for salary and wages Sr. No. 4 / Apr-30 Supplies 400 Sr. No. 4 / Apr-30 Printer(Office equipment) 400 Sr. No. 4 / Apr-30 Printer(Office equipment) 400 Accounts Payable 400 Accounts Payable 400 Supplies 400 To record the purchase of supplies on account To record the purchase of printer on account To record the correcting entry Sr. No. 5/ Apr-30 Equipment 30 Sr. No. 5/ Apr-30 Repair Expense 71 Sr. No. 5/ Apr-30 Repair Expense 71 Cash 30 Cash 71 Equipment 30 To record the payment towards Equipment To record the payment towards the repair on equipment Cash 41 To record the correcting entry If you find this solution helpful, please do rate it. Thank You