Michael Mears, CPA, was retained by Campus TV Repair Corp. to prepare financial statements for April 1996. Mears accumulated all the ledger balances per Morris's records and found the following:

Michael Mears reviewed the records and found the following errors:
1. Cash received from a customer on account was recorded as \(\$ 650\) instead of \(\$ 560\).
2. The purchase, on account, of a typewriter costing \(\$ 340\) was recorded as a debit to supplies and a credit to accounts payable for \(\$ 340\).
3. A payment of \(\$ 30\) for advertising expense was entered as a debit to Miscellaneous Expense \(\$ 30\) and a credit to Cash \(\$ 30\).
4. The first salary payment this month was for \(\$ 1,900\), which included \(\$ 500\) of salaries payable on March 31. The payment was recorded as a debit to Salaries Expense \(\$ 1,900\) and a credit to Cash \(\$ 1,900\). (No reversing entries were made on April 1.)
5. A cash payment of repair expense on equipment for \(\$ 86\) was recorded as a debit to Equipment \(\$ 68\) and a credit to Cash \(\$ 68\).
\section*{Instructions}

(a) Prepare an analysis of each error showing (1) the incorrect entry, (2) the correct entry, and (3) the correcting entry.

(b) Prepare a correct trial balance.

Transcribed Image Text:

CAMPUS TV REPAIR CORP. Trial Balance April 30, 1996 Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Salaries Payable Unearned Fees Debit Credit $ 5,100 3,200 800 10,600 $ 1,350 2,100 500 890