Kylie Cunnington has trouble keeping her debits and credits equal. During a recent month, Kylie made the following errors:

a. Kylie recorded an $800 payment of rent by debiting rent expense for $80 and crediting Cash for $80.

b. In recording a $250 payment on account, Kylie debited Accounts Receivable and credited Cash.

c. Kylie recorded the receipt of cash for service revenue by debiting Cash for $430 instead of the correct amount of $340. Kylie also credited Service Revenue for $430, the incorrect amount.

d. Kylie recorded a $160 purchase of supplies on account by debiting Accounts Payable and crediting Supplies.

e. In preparing the trial balance, Kylie omitted a $5,000 note payable.

Requirements

1. For each of these errors, state whether Kylie'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.

Use the following format:

Effect on Trail Balance _________________ Account(s) Misstated

Total debits = Total credits .......................................... Cash

......................................................................... $720 too high

......................................................................... Rent Expense

.......................................................................... $720 too low