Link Back to Chapter 2 (Accounting Errors). The accountant of Iowa Packing Company encountered the following situations while adjusting and closing the books at February 28. Consider each situation independently.

a. A $1,400 debit to Supplies was posted as $4,100. (1) At what stage of the accounting cycle will this error be detected? (2) What is the name of this type of error? Explain how to identify the error.

b. The $1,300 balance of Computer Software was entered as $13,000 on the trial balance. (1) What is the name of this type of error? (2) Assume that this is the only error in the trial balance. Which will be greater, the total debits or the total credits, and by how much? (3) How can this type of error be identified?

c. The accountant failed to make the following adjusting entries at February 28: (1) Depreciation of equipment. $700. (2) Earned service revenue that had been collected in advance. $2.700. (3) Accrued service revenue. $1,400. (4) Insurance expense, $360. (5) Accrued interest expense on a note payable, $520. Compute the overall net income effect of these omissions.

d. Record each of the adjusting entries identified in item c.