The trial balance of Winter Co. does not balance: WINTER CO. Trial Balance June
ID: 2338155 • Letter: T
Question
The trial balance of Winter Co. does not balance:
WINTER CO.
Trial Balance
June 30, 2017
Debit
Credit
Cash
$2,833
Accounts receivable
1,990
Supplies
532
Equipment
$7,875
Accounts payable
2,573
Unearned revenue
1,847
F. Winter, capital
11,221
F. Winter, drawings
801
Service revenue
3,475
Office expense
978
Salaries expense
2,977
$11,958
$25,144
Your review of the ledger reveals that each account has a normal balance. You also discover the following errors:
Prepare a correct trial balance.
WINTER CO.
Trial Balance
June 30, 2017
Debit
Credit
Cash
$2,833
Accounts receivable
1,990
Supplies
532
Equipment
$7,875
Accounts payable
2,573
Unearned revenue
1,847
F. Winter, capital
11,221
F. Winter, drawings
801
Service revenue
3,475
Office expense
978
Salaries expense
2,977
$11,958
$25,144
Explanation / Answer
WINTER CO. Trial Balance June 30,2017 Account Debit credit cash [2833-180] $2,653 Accounts receivable [1990+180+774] $2,944 supplies [532+350] $882 Prepaid Insurance $647 Equipment [7875-350] $7,525 Accounts payable [2573-99] $2,474 Unearned revenue $1,847 F.winter capital $11,221 F winer Drawings [801+390] $1,191 service revenue $4,375 office expense [978+510] $1,488 salaries expense [2977-390] $2,587 Total $19,917 $19,917 Notes- 1) cash was excess debited by 860-680=180 and accounts receivable is credited by 180 so cash is decreased by 180 and receivables are increased by 180. 2)supplies are increased by 350 and equipment are decreased by 350 3)accounts receivable are credited by 860-86 =774 as they are less debited 4)office expense are increased by 510 5)accounts payable are debited by remaining amount 605-506=99 6)Drawing are increased by 390 and salaries are decreased by 390 7)revenue is corrected to 4375 8) Prepaid Insurance account with a debit balance of 647 is added.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.