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Horace Culpepper, CPA, was retained by Carla Vista Cable to prepare financial statements for April 2020. Horace accumulated all the ledger balances per Carla Vistas

Horace Culpepper, CPA, was retained by Carla Vista Cable to prepare financial statements for April 2020. Horace accumulated all the ledger balances per Carla Vistas records and found the following.

Carla Vista Cable Trial Balance April 30, 2020

Debit

Credit

Cash

$4,000

Accounts Receivable

3,000

Supplies

900

Equipment

10,900

Accumulated DepreciationEquip.

$1,390

Accounts Payable

2,100

Salaries and Wages Payable

600

Unearned Service Revenue

800

Owners Capital

13,360

Service Revenue

5,000

Salaries and Wages Expense

3,100

Advertising Expense

600

Miscellaneous Expense

250

Depreciation Expense

500

$23,250

$23,250

Horace Culpepper reviewed the records and found the following errors.

1. Cash received from a customer on account was recorded as $880 instead of $300.
2. A payment of $77 for advertising expense was entered as a debit to Miscellaneous Expense $77 and a credit to Cash $77.
3. The first salary payment this month was for $2,000, which included $600 of salaries payable on March 31. The payment was recorded as a debit to Salaries and Wages Expense $2,000 and a credit to Cash $2,000. (No reversing entries were made on April 1.)
4. The purchase on account of a printer costing $340 was recorded as a debit to Supplies and a credit to Accounts Payable for $340.
5. A cash payment of repair expense on equipment for $75 was recorded as a debit to Equipment $58 and a credit to Cash $58.

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Prepare an analysis of each error showing (1) the incorrect entry, (2) the correct entry, and (3) the correcting entry. Items 4 and 5 occurred on April 30, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) INCORRECT ENTRY No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5. (2) CORRECT ENTRY No. Account Titles and Explanation Debit Credit 1 2. 3. 4. 5. (3) CORRECTING ENTRY No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5

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