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.

Short answer

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

Step-by-step solution

Step-by-Step SolutionStep 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