The following errors occurred in the accounting records of True Time Security, Inc.: a. The company accountant

Question:

The following errors occurred in the accounting records of True Time Security, Inc.:
a. The company accountant recorded the receipt of cash for service revenue by debiting Cash for $370 instead of the correct amount of $730. Service Revenue was also credited for $370, the incorrect amount.
b. A $500 purchase of supplies on account was recorded by debiting and crediting Supplies.
c. The company accountant recorded a $1,750 payment of rent by debiting rent expense for $17,500 and crediting Cash for $17,500.
d. In recording a $870 payment on account, was debited and Cash was credited.

Requirements
1. Prepare the necessary journal entries to correct each of these errors.
2. For each of the errors, determine if the error would cause net income to be over- stated, understated, or unchanged.

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