Joe Edmonds, CPA, was retained by Fox Cable to prepare financial statements for
April 2010. Edmonds accumulated all the ledger balances per Fox records and found the following
Joe Edmonds reviewed the records and found the following errors.
1. Cash received from a customer on account was recorded as $960 instead of $690.
2. A payment of $65 for advertising expense was entered as a debit to Miscellaneous Expense $65 and a credit to Cash $65.
3. The first salary payment this month was for $1,900, which included $700 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.)
4. The purchase on account of a printer costing $290 was recorded as a debit to Supplies and a credit to Accounts Payable for $290.
5. A cash payment of repair expense on equipment for $95 was recorded as a debit to Equipment $59 and a credit to Cash $59.
(a) 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, 2010.
(b) Prepare a correct trial balance.