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

question 119

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.
1.A credit sale for $311 was recorded as a credit to the revenue account,but the offsetting
debit was not posted.
2.A cash payment to a creditor for $2,600 was never recorded.
3.The $680 balance of the Prepaid Insurance account was listed in the credit column of the
trial balance.
4.A $24,900 truck purchase for cash was recorded as a $24,090 debit to Vehicles and a
$24,090 credit to Notes Payable.
5.A purchase of office supplies for $150 was recorded as a debit to Office Equipment.The
offsetting credit entry was correct.
6.An additional investment of $4,000 by Del Harris was recorded as a debit to Common
Stock and as a credit to Cash.
7.The cash payment of the $510 utility bill for December was recorded (but not paid)twice.
8.A revenue account balance of $79,817 was listed on the trial balance as $97,817.
9.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.

Recognize the importance of indexing rules in organizing records.

Acknowledge the need for security, accessibility, and preservation of records.

Apply safety guidelines for equipment use in the office.

Highlight the importance of backup solutions for electronic records to prevent data loss.

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Definitions:

No-Par Common Stock

A type of common stock that is issued without a par value, meaning its value is not fixed in the corporate charter.

Stated Value

A nominal value assigned to share capital in the company's books, which is not determined by market value but is chosen by the company itself.

Cash Proceeds

The total amount of cash received from transactions, often from the sale of assets or issuance of stock.

Paid-In Capital

Funds received by a company from selling its equity shares to investors, over and above the par or stated value of the shares.