Error Correction Template:

After your analysis, address the following questions in the Error Correction Template:

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Identify which accounts are in error, and how they are related to each other.
Discuss the likely causes of the errors (omission, duplication, incorrect transaction date, etc.).
Looking forward, what tools will you use and actions will you take to ensure these errors don’t continue to be an issue in the company records?
Draft a brief response to Margaret sharing your findings and plan for how you will correct the errors in the computerized accounting software. Be specific in your findings and recommendations for correction. Include suggestions for how these types of errors can be avoided in the future.

M2 Assignment

2 Assignment

Mags and Bags

Debit Credit

6,000

25,000

5,000 5,000

2,200

0 0

37,520

12,000

2,500

60 60

5,000 5,000

Insurance 0 0

500

200

82,720

83,120

								Module	0
Instructions: Complete a brief analysis of what the current account balances are, and what they
should be according to Margaret’s CPA. Complete column G (Difference Analysis).
	Mags and Bags	Difference Analysis
Trial Balance	Trial Balance-CPA Version
Account Number	Account		Debit		Credit
101	Checking	10,000	10,080	47,976.29
105	Accounts Receivable (A/R)	4,	200	4,			60
115	Merchandise Inventory	1				5,000	14,800
125	Prepaid	Insurance		6,000
135	Vehicle		25,000
137	Accumulated Depreciation
201	Accounts Payable (A/P)		2,200
205	Loan Payable		500
301	Common Stock		37,520
318	Retained Earnings		12,000
401	Sales	26,000	26,400	2500
501	Cost of Goods Sold	13,000	13,200
601	Advertising		2,500
603	Bank Charges
607	Depreciation Expense
609	Freight & Delivery	130	280
611
621	Office Supplies	248	106.52
625	Repair & Maintenance	140
627	Shipping and delivery expense	592	442
629	Stationery & Printing	748
633	Telephone Expense	120	76.19
635	Utilities	230	150	79
	82,720		83,120	55,738
Address the following questions fully and completely. Use the details of your analysis above to
justify your responses. Write in complete sentences, and pay attention to spelling and grammar.

Q1: Identify which accounts are in error, and how they are related to each other.

Q4: Draft a brief response to Margaret sharing your findings and plan for how you will correct the errors in the computerized accounting software. Be specific in your findings and recommendations for correction. Include suggestions for how these types of errors can be avoided in the future.

Q2: Discuss the likely causes of the errors (omission, duplication, incorrect transaction date, etc.).

Q3: Looking forward, what tools will you use and actions will you take to ensure these errors don’t continue to be an issue in the company records?

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