At Year-End, Harris Cleaning Service Noted the Following Errors in Its

question 40

Essay

At year-end, Harris Cleaning Service noted the following errors in its trial balance:
It understated the total debits to the Cash account by $500 when computing the account
balance.
2.A credit sale for $311 was recorded as a credit to the revenue account, but the offsetting
debit was not posted.
3.A cash payment to a creditor for $2,600 was never recorded.
4.The $680 balance of the Prepaid Insurance account was listed in the credit column of the
trial balance.
5.A $24,900 truck purchase for cash was recorded as a $24,090 debit to Vehicles and a
$24,090 credit to Notes Payable.
6.A purchase of office supplies for $150 was recorded as a debit to Office Equipment.The
offsetting credit entry was correct.
7.An additional investment of $4,000 by Del Harris was recorded as a debit to Common
Stock and as a credit to Cash.
8.The cash payment of the $510 utility bill for December was recorded (but not paid)twice.
9.A revenue account balance of $79,817 was listed on the trial balance as $97,817.
10.A $1,000 cash dividend was recorded as a $100 debit to Dividends and $100 credit to cash.
Using the form below, indicate whether each error would cause the trial balance to be out of balance, the amount of any imbalance and whether a correcting journal entry is required.
$\begin{array}{c}\begin{array}{|c}\hline\\\\\hline \text { Error }\\\\\hline 1 \\\hline 2 . \\\hline 3 . \\\hline 4 . \\\hline 5 . \\\hline 6 . \\\hline 7 \\\hline 8 \\\hline 9 . \\\hline 10 . \\\hline\end{array}\begin{array}{c}\hline\text { Would the error cause the trial }\\\text { balance to be out of balance? }\\\begin{array}{|c|c|}\hline \quad\quad\text { Yes } \quad\quad\quad& \quad\quad\text { No }\quad\quad \\\\\hline & \\\hline & \\\hline & \\\hline & \\\hline & \\\hline & \\\hline & \\\hline & \\\hline \\\hline & \\\hline\end{array}\end{array}\begin{array}{c|}\hline\\\\\hline \begin{array}{c}\text { Amount of } \\\text { Imbalance }\end{array} \\\hline\\\hline \\\hline \\\hline \\\hline \\\hline \\\hline \\\hline \\\hline \\\hline \\\hline\end{array}\begin{array}{c}\hline\text { Correcting Journal Entryl }\\\text {Required }\\\begin{array}{c|c|}\hline \quad\quad\text { Yes } \quad\quad\quad& \quad\quad\text { No }\quad\quad \\\\\hline& \\\hline & \\\hline \\\hline & \\\hline \\\hline \\\hline \\\hline \\\hline & \\\hline \\\hline\end{array}\end{array}\end{array}$

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