The trial balance of Jubilee, Inc., at October 31, 2021, does not balance. 

Requirements

1. Prepare a trial balance for the ledger accounts of Jubilee, Inc., as of October 31, 2021.

2. Determine the out-of-balance amount. The error lies in the Accounts Receivable account. Add the out-of-balance amount to, or subtract it from, Accounts Receivable to determine the correct balance of Accounts Receivable. After correcting Accounts Receivable, advise the top management of Jubilee, Inc., on the company’s

a. Total assets.

b. Total liabilities.

c. Net income or net loss for October.

Transcribed Image Text:

Cash.............. Accounts receivable.. Land..... Accounts payable. Note payable......... $ 4,100 7,300 31,700 6,700 5,400 Common stock.. Retained earnings... Service revenue. Salary expense.. Advertising expense...... $23,900 1,200 9,800 2,500 1,200