Question

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

a. In preparing the trial balance, Geena omitted a $5,000 Notes Receivable. The credit to Cash was correct.
b. Geena posted a $70 Utilities Expense as $700. The credit to Cash was correct. c. In recording a $500 payment on account, Geena debited Equipment instead of Accounts Payable.
d. In journalizing a receipt of cash for service revenue, Geena debited Cash for $1,000 instead of the correct amount of $100. The credit was correct.

Answer 1

Geena Rothman has made several accounting errors that have caused her debits and credits to be unequal. I'll explain each error and how she can correct them.

Step-by-step explanation:

Geena Rothman has made several accounting errors that have caused her debits and credits to be unequal. Let's go through each error and explain what went wrong:

1. Error a: Geena omitted a $5,000 Notes Receivable in the trial balance. This means that the debit side of the trial balance is lower than it should be. To fix this, Geena should include the $5,000 Notes Receivable in the trial balance.
2. Error b: Geena posted a $70 Utilities Expense as $700. This means that the debit side of the account is overstated. To correct this error, Geena should change the amount to $70.
3. Error c: Geena debited Equipment instead of Accounts Payable when recording a $500 payment on account. This means that the debit side of the account is incorrect. To fix this, Geena should debit Accounts Payable instead of Equipment.
4. Error d: Geena debited Cash for $1,000 instead of the correct amount of $100 when journalizing a receipt of cash for service revenue. This means that the debit side of the account is too high. Geena should debit Cash for the correct amount of $100.

By identifying and correcting these errors, Geena can ensure that her debits and credits are equal.