a company for each item must indicate the effect and the amount of the error such as understatement, over statement, or no effect on the income statement and the balance sheet component

the format is below:

income statement balance sheet

item revenue expense profit asset liability owner's equity

the owner operates her own company enterprise. the account discovered the following errors at the end of January its first month of operations

#1 Timobe's personal rent cheque of $1000 was debited to rent expense and credited cash

#2 cash payment from a customer for $750 was debited to accounts receivable and credited to cash as $570

#3 an accrual of interest income of $600 was recorded as a credit to interest payable and a debit to interest receivable

#4 the purchase of six month of office supply $1800 was recorded as a debit to supply expense and credited to accounts payable

#5 payments to accounts payable of $500 was recorded as a debit to cash and a credit to accounts payable

#6 a prepayment of $450 for services to be rendered was debited to service revenue and credited to unearned revenue in the amount of $540

#7 deprecation expense of $800 for the period was not recorded

#8 a customer was billed for $400 of services rendered . unearned revenue was debited and service revenue was credited

#9 one year insurance policy was purchase for $2400 on January 1, and was debited to insurance expense and credited to cash

#10 salaries payable of $1000 at January 31, was not recorded

#b correct each error by reversing the original error and record the correct entry .