Debit Credit Cash Accounts Receivable Supplies Equipment Accounts Payable Unearn

Question

Debit Credit Cash Accounts Receivable Supplies Equipment Accounts Payable Unearned Service Revenue Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Office Expense Totals $2,971 $3,332 901 3,901 2,767 1,301 6,101 3,101 2,481 3,501 1,041 $13,977 $17,421 Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors. 1. Cash received from a customer on account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750. 2. The purchase of a computer printer on account for $601 was recorded as a debit to Supplies for $601 and a credit to Accounts Payable for $601 3. Services were performed on account for a client for $890. Accounts Receivable was debited for $890 and Service Revenue was credited for $89. 4. A payment of $166 for telephone charges was recorded as a debit to Office Expense for $166 and a debit to Cash for $166. 5. When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to $426 was performed prior to June 30 (related to Unearned Service Revenue) 6. A debit posting to Salaries and Wages Expense of $771 was omitted. 7. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260 8. A dividend of $676 was debited to Salaries and Wages Expense for $676 and credited to Cash for $676. Prepare a correct trial balance

Explanation / Answer

Correction for error:

8 Dividend should be debited by 676 and Salaries ad Wages should be credited by the same amount

Corrected Trail Balance

Debit Credit Correction Cash A/c 2971 =180-166*2 Accounts Receivable 3332 -180 Supplies 901 -650 Equipment 3901 650 Accounts Payable 2767 -466 Unearned Service Revenue 1301 -426 Common Stock 6101 Retained Earnings 3101 Service Revenue 2481 =801+426 Salaries and Wages Expenses 3501 =771-676 Office Expenses 1041 Dividend 676

Correction for error:

1 Cash will go up by (750-570) and Accounts receivable will go down by the same amount. 2 Equipment will go up by 601 and Supplies should go down by same amount 3 Service Revenue will be credited by (890-89) 4 Cash will be credited by double of 166. 5 Unearned service revenue of 426 will move to Service Revenue 6 Salaries and Wages debited by 771 7 Account payable debited by 206+260

8 Dividend should be debited by 676 and Salaries ad Wages should be credited by the same amount

Corrected Trail Balance

Particulars Debit Credit Cash A/c     2,819.00 Accounts Receivable     3,152.00 Supplies        251.00 Equipment     4,551.00 Accounts Payable       2,301.00 Unearned Service Revenue        875.00 Common Stock     6,101.00 Retained Earnings     3,101.00 Service Revenue     3,708.00 Salaries and Wages Expenses     3,596.00 Office Expenses     1,041.00 Dividend        676.00 Total 16,086.00 16,086.00

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