The trial balance for Treasure Hunt Exploration Company does not balance. The fo
ID: 2387672 • Letter: T
Question
The trial balance for Treasure Hunt Exploration Company does not balance.The following errors were detected:
a. The cash balance is overstated by $1,000.
b. Rent expense of $300 was erroneously posted as a credit rather than a debit.
c. A $6,000 credit to Service revenue was not posted.
d. A $500 debit to Accounts receivable was posted as $50.
e. The balance of Utilities expense is understated by $90.
f. A $600 purchase of supplies on account was neither journalized nor posted.
g. Exploration equipment should be $17,160.
Requirement
1. Prepare the corrected trial balance at July 31, 2012. Journal entries are not required.
Explanation / Answer
a similar question is solved below, but with different values. hope this helps you. The trial balance for Treasure Hunt Exploration Company does not balance. The following errors were detected: a. The cash balance is overstated by $5,000. b. Rent expense of $340 was erroneously posted as a credit rather than a debit. c. A $6,800 credit to Service revenue was not posted. d. A $400 debit to Accounts receivable was posted as $40. e. The balance of Utilities expense is understated by $70. f. A $900 purchase of supplies on account was neither journalized nor posted. g. Exploration equipment should be $16,490. Here's the wrong trial balance: Account Debit Credit Cash Dr 6300 Accounts receivable Dr 6,000 Supplies Dr 400 Exploration equipment Dr 22,300 Computers Dr 49,000 Accounts payable Cr 2,800 Note payable Cr 18,500 Jones, capital Cr 50,000 Jones, drawing Cr 4,000 Service revenue Cr 4,100 Salary expense Dr 1,400 Rent expense Dr 800 Advertising expense Dr 900 Utilities expense Dr 800 Total Dr $91,900 Cr $75,400 And here's what I've done so far: Cash Dr 1300 Accounts receivable Dr 6360 Supplies Dr 1300 Exploration equipment Dr 16490 Computers Dr 49000 Accounts payable Cr 3700 Note payable Cr 18500 Jones, capital Cr 50000 Jones, drawing Dr 4000 Service revenue Cr 10900 Salary expense Dr 1400 Rent expense Dr 1140 Advertising expense Dr 900 Utilities expense Dr 870 Total Dr $82,760 Cr $83,100 Looks like $340 dollars is missing. I guess it is rent expense, but I don't know how to put it correct - I've added it to rent expense but it doesn't balance solution: It is in rent expense. Since 340 was accidentally credited to the account it took 340 away from the original amount. So by debiting the 340 "ONCE" you are simply restoring the account to its original balance. You have to then debit 340 again to bring the account to its rightful balance of 1480, ergo, your missing 340.
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