Because the trial balance did not balance, an examination of Hal\'s ledger exami
ID: 2456101 • Letter: B
Question
Because the trial balance did not balance, an examination of Hal's ledger examined and the following errors were found: A purchase of suopplies on account for $245 was posted as a debit to supplies and a debit to Accounts Payble An investment of $500 cash by the owner was debited to Common Stock and credited to Cash In computing the balance of the Accounts Receivable account, a debit of S600 was omitted from the computation. One debit of $300 to the Dividends account was posted as a credit. Office Equipment purchased for $800 was posted to the Repair Equipment account. One enure entry was not posted to the general ledger. The transation involved the receipt of $125 cash at the time repair services were performed. Prepare a corrected trial balance for Hal's Auto RepairExplanation / Answer
Hal's Auto Repair
Trial Balance
October. 31, 2010
Adjustment
Post closing Trail Balance
Debit
Credit
Debit
Credit
Debit
Credit
Cash
$ 975
$ 1,125
$ 2,100
(Wrong Credit of $500 adjusted = 500 * 2 = $1000) + Entry omitted $125 = $1125
Accounts Receivables
$ 3,800
$ 600
$ 4,400
(Debit of $600 Omitted, now adjusted)
Supplies
$ 500
$ 500
Repair Equipment
$ 13,000
$ 800
$ 12,200
(Wrong entry adjusted)
Office Equipment
$ 6,600
$ 800
$ 7,400
Accounts Payable
$ 4,510
$ 490
$ 5,000
(Wrong debit of $245 adjusted = 245 * 2 = $490)
Common Stock
$ 10,000
$ 1,000
$ 11,000
(Wrong debit of $500 adjusted = 500 * 2 = $1000)
Retained Earnings
$ 13,000
$ 13,000
Dividends
$ 4,200
$ 600
$ 4,800
(Wrong Credit of $300 adjusted =300* 2 = $600)
Repair Fees Earned
$ 10,875
$ 125
$ 11,000
(Entry omitted)
Supplies Expense
$ 8,600
$ 8,600
Totals
$ 37,675
$ 38,385
$ 3,125
$ 2,415
$ 40,000
$ 40,000
Hal's Auto Repair
Trial Balance
October. 31, 2010
Adjustment
Post closing Trail Balance
Debit
Credit
Debit
Credit
Debit
Credit
Cash
$ 975
$ 1,125
$ 2,100
(Wrong Credit of $500 adjusted = 500 * 2 = $1000) + Entry omitted $125 = $1125
Accounts Receivables
$ 3,800
$ 600
$ 4,400
(Debit of $600 Omitted, now adjusted)
Supplies
$ 500
$ 500
Repair Equipment
$ 13,000
$ 800
$ 12,200
(Wrong entry adjusted)
Office Equipment
$ 6,600
$ 800
$ 7,400
Accounts Payable
$ 4,510
$ 490
$ 5,000
(Wrong debit of $245 adjusted = 245 * 2 = $490)
Common Stock
$ 10,000
$ 1,000
$ 11,000
(Wrong debit of $500 adjusted = 500 * 2 = $1000)
Retained Earnings
$ 13,000
$ 13,000
Dividends
$ 4,200
$ 600
$ 4,800
(Wrong Credit of $300 adjusted =300* 2 = $600)
Repair Fees Earned
$ 10,875
$ 125
$ 11,000
(Entry omitted)
Supplies Expense
$ 8,600
$ 8,600
Totals
$ 37,675
$ 38,385
$ 3,125
$ 2,415
$ 40,000
$ 40,000
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