The following trial balance was prepared incorrectly. The amounts in the general

Question

The following trial balance was prepared incorrectly. The amounts in the general ledger were
correct but some of the account balances were reported incorrectly in the report. All of the
accounts should have a normal balance.

Cash
40,000
Accounts receivable
80,000
Inventory
120,000
Prepaid rent
15,000
Equipment
340,000
Accumulated depreciation
200,000
Accounts payable
70,000
Salaries payable
20,000
Note payable
200,000
Common Stock
20,000
Retained earnings
50,000
Commission revenue
180,000
Facility expense
50,000
Wage expense
60,000
Depreciation expense
20,000
Professional services expense
15,000
785,000
695,000

Explanation / Answer

DR the following: Cash 40,000 Accounts receivable 80,000 Inventory 120,000 Prepaid rent 15,000 Equipment 340,000 CR the following: Accumulated depreciation 200,000 Accounts payable 70,000 Salaries payable 20,000 Note payable 200,000 Common Stock 20,000 Retained earnings 50,000 Commission revenue 180,000 DR the following: Facility expense 50,000 Wage expense 60,000 Depreciation expense 20,000 Professional services expense 15,000 TOTAL for both CR and DR will be 740,000

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