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

a. Jill recorded an $800 rent payment by debiting Rent Expense for $80 and crediting Cash for $80.

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

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

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

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

Requirements

1. For each of these errors, state whether Jill’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 Trial Balance                         Account(s) Misstated
Total debits = Total credits......................Cash
..................................................................$720 too high
..................................................................Rent Expense
..................................................................$720 too low