On January 1, 2017, Paula Fernandes started a new business called Wicked Dance. Near the end of

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On January 1, 2017, Paula Fernandes started a new business called Wicked Dance. Near the end of the year, she hired a new bookkeeper without checking references or requesting an academic transcript. As a result, a number of mistakes have been made in preparing the following trial balance:
Wicked Dance Trial Balance December 31, 2017 Credit Debit $ 5,500 Cash ... $ 7,900 Accounts receivable Office supplies 2


Paula€™s analysis of the situation has uncovered these errors:
a. The sum of the debits in the Cash account is $37,175 and the sum of the credits is $30,540.
b. A $275 payment from a credit customer was posted to Cash but was not posted to Accounts Receivable.
c. A credit purchase of office supplies for $400 was not posted at all. d. A transposition error occurred in copying the balance of the Services Revenue account to the trial balance. The correct amount was $23,250. Other errors were made in placing account balances in the wrong trial balance columns and in taking the totals of the columns.


Required 

Prepare a corrected trial balance.

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Related Book For  book-img-for-question

Fundamental Accounting Principles Volume 1

ISBN: 9781259259807

15th Canadian Edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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