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Analyzing accounting errors Danielle Neylon has trouble keeping her debits and credits equal. During a recent month, Danielle made the following accounting errors: a. In preparing the trial balance, Danielle omitted a $7,000 notes payable. The debit to Cash was correct. b. Danielle posted a $90 Utilities Expense as $900. The credit to Cash was correct. c. In recording an $800 payment on account, Danielle debited Furniture instead of Accounts Payable. d. In journalizing a receipt of cash for service revenue, Danielle debited Cash for $1,200 instead of the correct amount of $120. The credit was correct. e. Danielle recorded a $540 purchase of office supplies on account by debiting Office Supplies and crediting Accounts Payable for $450. Requirements 1. For each of these errors, state whether total debits equal total credits on the trial balance. 2. Identify each account that has an incorrect balance, and the amount and direction of the error (such as “Accounts Receivable $500 too high”).
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