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Problem 4-6A Joe Edmonds, CPA

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P4-6A Joe Edmonds, CPA, was retained by Clark Cable Inc. to prepare financial statements
for April 2008. Edmonds accumulated all the ledger balances per Clark’s records and found
the following.

CLARK CABLE INC.
Trial Balance
April 30, 2008

Debit Credit
Cash $ 4,100
Accounts Receivable 3,200
Supplies 800
Equipment 10,600
Accumulated Depreciation $ 1,350
Accounts Payable 2,100
Salaries Payable 700
Unearned Revenue 890
Common Stock 10,000
Retained Earnings 2,900
Service Revenue 5,450
Salaries Expense 3,300
Advertising Expense 600
Miscellaneous Expense 290
Depreciation Expense 500
$23,390 $23,390

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.

Instructions

(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, 2008.

(b) Prepare a correct trial balance

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