The new accountant for Wilson's Giftware was in a hurry to record the transactions for the month of March, and made the following errors:
1. February utilities of $560 had been recorded as an Account Payable in February. When the account was paid in March, the accountant recorded the payment as a debit to Utilities Expense and a credit to Cash.
2. March 15^th salaries totalling $4,750 were recorded as a debit to Supplies instead of to Salaries Expense.
3. A customer payment in the amount of $1,200 was credited to Accounts Receivable. However the sale had never been invoiced or recorded and was a cash sale.
4. Samra Wilson withdrew $800 for personal use. The accountant recorded the entry as a debit to Cash and a credit to S. Wilson, Drawings.
Instructions:
a. For each of the four errors, indicate the effect of the error on the balance sheet and income statement, indicating whether the assets, liabilities, owner's equity, revenue, expenses, and Profit are overstated (O), understated (U), or not affected (NA). Use the table below for your answer.
b. For each of the four errors, prepare the correcting entries required at March 31.

Question

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The Answer of The new accountant for Wilson's Giftware was in a hurry to record the transactions for the month of March, and made the following errors: 1. February utilities of $560 had been recorded as an Account Payable in February. When the account was paid in March, the accountant recorded the payment as a debit to Utilities Expense and a credit to Cash. 2. March 15^th salaries totalling $4,750 were recorded as a debit to Supplies instead of to Salaries Expense. 3. A customer payment in the amount of $1,200 was credited to Accounts Receivable. However the sale had never been invoiced or recorded and was a cash sale. 4. Samra Wilson withdrew $800 for personal use. The accountant recorded the entry as a debit to Cash and a credit to S. Wilson, Drawings. Instructions: a. For each of the four errors, indicate the effect of the error on the balance sheet and income statement, indicating whether the assets, liabilities, owner's equity, revenue, expenses, and Profit are overstated (O), understated (U), or not affected (NA). Use the table below for your answer. b. For each of the four errors, prepare the correcting entries required at March 31.

The New Accountant for Wilson's Giftware Was in a Hurry