Response to the following problem:
The accountant for River Square Retail Center encountered the following situations while adjusting and closing the books at December 31. Consider each situation independently.
a. The accountant failed to make the following adjusting entries at December 31:
1. Accrued property tax expense, $200.
2. Supplies expense, $1,090.
3. Accrued interest revenue on a note receivable, $1,650.
4. Depreciation of equipment, $400.
5. Earned rent revenue that had been collected in advance, $1,100.
Compute the overall net income effect of these omissions.
b. Record each adjusting entry identified in item a.
c. A $500 credit to Accounts Receivable was posted as a debit.
1. At what stage of the accounting cycle will this error be detected?
2. Describe the technique for identifying the amount of the error.
d. The $16,000 balance of Equipment was entered as $1,600 on the trial balance.
1. What is the name of this type of error?
2. Assume that this is the only error in the trial balance. Which will be greater, the total debits or the total credits, and by how much?
3. How can this type of error be identified?