Sara Yu, CPA, was retained by Info Cable to prepare financial statements for April 2014.Yu accumulated all the ledger balances per Info’s records and found the following.
Cash $4,169
Account Receivable 3,185
Supplies 869
Equipment 10,116
Accumulated Depreciation-Equip.$1,381
Accounts Payable2,226
Salaries and Wages Payable 648
Unearned Service Revenue 916
Common Stock9,770
Retained Earnings2,970
Service Revenue5,036
Salaries and Wages Expense 3,320
Advertising Expense 456
Miscellaneous Expense 346
Depreciation Expense 486
Sara Yu reviewed the records and found the following errors.
1. Cash received from a customer on account was recorded as $930 instead of $390.
2. A payment of $75 for advertising expense was entered as a debit to Miscellaneous Expense $75 and a credit to Cash $75.
3. The first salary payment this month was for $1,851, which included $648 of salaries payable on March 31. The payment was recorded as a debit to Salaries and Wages Expense $1,851 and a credit to Cash $1,851. (No reversing entries were made on April 1.)
4. The purchase on account of a printer costing $257 was recorded as a debit to Supplies and a credit to Accounts Payable for $257. 5. A cash payment of repair expense on equipment for $125 was recorded as a debit to Equipment $152 and a credit to Cash $152.
Prepare an analysis of each error showing the incorrect entry, the correct entry, and the correcting entry. Items 4 and 5 occurred on April 30, 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)