Exercise 3-3 The following trial balance of Waterway Traveler Corporation does n

Question

Exercise 3-3 The following trial balance of Waterway Traveler Corporation does not balance WATERWAY TRAVELER CORPORATION TRIAL BALANCE APRIL 30, 2017 Debit $6,521 5,450 3,177 8,310 Credit Cash Accounts Receivable Supplies EQU?pment Accounts Payable Common Stock Retained Earnings Service Revenue Office Expense 57,254 8,210 2,210 5410 4530 923,038523 083 An examination of the ledger shows these errors 1. Cash recelved from a customer on account was recorded (both debit and credit) as $1,380 instead of $1.830 2. The purchase on account of a computer costing s3,089 was recorded as a debit to Office Expense and a credit to Accounts Pay 3. Services were performed on account for a dient. $2460, for which Accounts Recevable was debited $2.460 and Service Res 4. A payment of $305 for telephone charges was entered as a debit to office Expense and a debit to Cash 5. The Service Revenue account was totaled at 5.410 instead of $5,490. able From this information prepare a corrected trial balance

Explanation / Answer

Solution:

Please note I am reading the purchase of an account as 3088 (print is very light). In case the figure is not the same pls make the desired changes in above table (those which are highlighted in bold letters)

Corrected trial balance Debit Credit Working Cash 6361 6520+450-610 Accounts receivable 5,000 5450-450 Supplies 3,177 Equipment 9398 6310+3088 Accounts payable 7,254 Common stock 8,210 Retained earnings 2,210 Service revenue 7704 5410+80+2214 Office expense 1442 4530-3088 25378 25378

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