The trial balance of Winter Co. does not balance:

Your review of the ledger reveals that each account has a normal balance. You also discover the following errors:

1. Cash received from a customer on account was debited to Cash for $750 and Accounts Receivable was credited for the same amount. The actual collection was $570.

2. The purchase of supplies on account for $360 was recorded as a debit to Equipment for $360 and a credit to Accounts Payable for $360.

3. Services of $980 were performed on account for a client. Accounts Receivable was debited for $98 and Service Revenue was credited for $980.

4. A debit posting to Offi ce Expense of $500 was not done.

5. A payment on account for $806 was credited to Cash for $806 and debited to Accounts Payable for $608.

6. The withdrawal of $400 cash for Winter?s personal use was debited to Salaries Expense for $400 and credited to Cash for $400.

7. A transposition error (reversal of digits) was made when copying the balance in Service Revenue to the trial balance. The correct balance recorded in the account was $4,360.

8. The general ledger contained a Prepaid Insurance account with a debit balance of $655.

Instructions

Prepare a correct trial balance.

Taking it further

After the trial balance is corrected for the above errors, could there still be errors in any of the account balances? Explain why or why not.

Transcribed Image Text:

WINTER CO. Trial Balance June 30, 2021 Debit Credit $ 2,835 Cash Accounts receivable 1,861 Supplies Equipment 500 $ 7,900 Debit Credit Accounts payable 2,695 Unearned revenue 1,855 F. Winter, capital F. Winter, drawings Service revenue 11,231 800 3,460 Office expense Salaries expense 1,010 3,000 $25,286 $11,861