Chester Hinkson has trouble keeping his debits and credits equal. During a recent month, Chester made the

Question:

Chester Hinkson has trouble keeping his debits and credits equal. During a recent month, Chester made the following errors:
a. Chester recorded a $850 payment of rent by debiting Rent Expense for $85 and crediting Cash for $85.
b. In recording a $600 payment on account, Chester debited and credited Cash.
c. Chester recorded the receipt of cash for service revenue by debiting Cash for $280 instead of the correct amount of $820. Chester also credited Service Revenue for the $280, the incorrect amount.
d. Chester posted a $350 purchase of supplies on account by debiting and crediting Supplies.
e. In preparing the trial balance, Chester omitted a $50,000 note payable.
Requirements
1. For each of these errors, state whether Chester’s mistake would cause the total debits and total credits on the trial balance to be unequal.
2. Identify each account with an incorrect balance, and indicate the amount and direction of the error.
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...