25E_1 - Horngren'S Financial And Managerial Accounting

Question

Question: Courtney Meehan has trouble keeping her debits and credits equal. During a recent month, Courtney made the following accounting errors: 

a. In preparing the trial balance, Courtney omitted a \(5,000 Notes Payable. The debit to Cash was correct. 

b. Courtney posted a \)1,000 Utilities Expense as \(100. The credit to Cash was correct. 

c. In recording a \)600 payment on account, Courtney debited Furniture instead of Accounts Payable. 

d. In journalizing a receipt of cash for service revenue, Courtney debited Cash for \(50 instead of the correct amount of \)500. The credit was correct. 

e. Courtney recorded a \(210 purchase of office supplies on account by debiting Office Supplies for \)120 and crediting Accounts Payable for $120. 

Requirements 1. For each of these errors, state whether total debits equal total credits on the trial balance.

Step-by-Step Solution

Answer

Total debit and credit are equal in transaction c and e.

Step-by-Step Solution Step 1: Definition of Service Revenue

The service revenue is defined as the amount of money received by the business in exchange for providing the services to the clients.

Step 2:Stating whether total debit or total credit

Transaction Number
A	Total Debits	>	Total Credits
B	Total Debits	<	Total Credits
C	Total Debits	=	Total Credits
D	Total Debits	<	Total Credits
E	Total Debits	=	Total Credits