P2-33A Correcting errors in a trial balanee The trial balance of Beautiful Tots
ID: 2338258 • Letter: P
Question
P2-33A Correcting errors in a trial balanee The trial balance of Beautiful Tots Child Care does not balance BEAUTIFUL TOTS CHILD CARE Trial Balance August 31, 2018 Balance Account Title Cash Accounts Receivable Office Supplies Prepaid Insurance Equipment Accounts Payable Notes Payable Trumball, Capital Trumball, Withdrawals Service Revenue Salaries Expense Rent Expense Total Debit Credit $ 7,900 6,700 1,000 300 91,500 $ 3,400 45,000 57,000 5,000 12,350 4,400 750 $ 117,550 117,750 The following errors are detected a. Cash is understated by $1,500. b. A $4,100 debit to Accounts Receivable was posted as a credit. c. A $1,400 purchase of office supplies on account was neither journalized nor posted d. Equipment was incorrectly transferred from the ledger as $91,500. It should have been transferred as $83,000.Explanation / Answer
Solution:
BEAUTIFUL TOTS CHILD CARE
Corrected trail balance as of august 31,2018
Note: In this question you are not required for the journal entries. Thats why iam not prepared journal entries.
Debit ($) Credit ($) Cash 10,900 Office supplies 2,400 Prepaid insurance 4,100 Accounts receivable 14,900 Equipment 83,000 Trumball,withdrawals 3,200 Accounts payable 4800 Notes payable 45,000 Trumball,capital 57,000 Service revenue 16,450 Advertisement expenses 300 Salaries expenses 3,700 Rent expenses 750 Total 123,250 123,250Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.