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 (customer) 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
• Professional Fees (revenue) was understated in the ledger by $180

Show how the trial balance will indeed balance once these items are corrected. Tell Ranch Company how it can avoid this problem in the future. Write out your recommendations.

Transcribed Image Text:

Cash Accounts Receivable Office Equipment Accounts Payable Wages Payable H. Ranch, Capital H. Ranch, Withdrawals Professional Fees Rent Expense Advertising Expense Totals RANCH COMPANY TRIAL BALANCE JUNE 30, 2023 Dr. $51000 26000 1000 1000 63500 144000 2500 $289000 Cr. $ 63500 224000 24000 $311500