Your first assignment on your new job was to determine why the 31 December 2015 trial balance did not balance. In your review of the records you uncovered a number of errors described below:

1.  The Sundry Expense account with a balance of $245 was omitted from the trial balance.

2.  A payment of $890 on the electricity account payable was not posted to the Electricity Account Payable account, but was posted correctly to the Cash at Bank account.

3.  A $2587 debit to Cash at Bank was posted as $2857.

4.  A $360 credit was credited to the Accounts Receivable account but should have been made to the Services Revenue account instead.

5.  A cash receipt of $480 from customers in settlement of their accounts was posted twice to the Cash at Bank account and the Accounts Receivable account.

6.  The Accounts Payable account balance of $36 700 was listed in the trial balance as $37 600.

7.  A $2560 credit to Services Revenue was posted as a $256 credit. The debit to Cash at Bank was for the correct amount.

8.  A purchase of office supplies for $350 on credit was not recorded.

9.  A purchase of a delivery truck for $125 000 using a loan was posted as a debit to the Loan Payable account and a debit to the Equipment account.

10. The Drawings account balance of $16 000 was listed as a credit balance in the trial balance.

11. A $1300 payment to employees for their weekly salaries was credited to Cash at Bank only once but was posted twice to the Wages Expense account.

Required

A. Indicate in the table below how each error would affect the trial balance totals. If the error does not cause the trial balance to be out of balance and you tick ‘no‘ in the third column, write ‘equal‘ in the Difference Between Trial Balances Totals column. Each error is to be treated independently of the others.

B. Prepare the journal entries necessary to correct errors number 4, 5, and 8.