Andy Leaf is a careless bookkeeper. He is having a terrible time getting his trial balance to balance. Andy has asked for your assistance in preparing a correct trial balance. The following is the incorrect trial balance.

Facts you have discovered:
—† Debits to the Cash account were $2,640; credits to the Cash account were $2,150.
—† Amy Hall paid $15, but this was not updated in Accounts Receivable.
—† A purchase of office equipment for $105 on account was never recorded in the ledger.
—† Revenue was understated in the ledger by $180.
Show how the trial balance will indeed balance once these are corrected.
Tell Ranch Company how it can avoid this problem in the future. Write out your recommendations.

Transcribed Image Text:

RANCH COMPANY TRIAL BALANC JUNE 30, 2014 r. Cr Cash Accounts Receivable Office Equipment Accounts Payable Wages Payable H. Clo, Capital H. Clo, Withdrawals Professional Fees Rent Expense Advertising Expense 51000 63500 26000 1000 1000 63500 144000 224000 24000 2500 Totals 289000 11500