The trial balance of 4AC, Inc., at October 31, 2020, does not balance.

{Requirements}
1. Prepare a trial balance for the ledger accounts of 4AC, Inc., as of October 31, 2020.
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 \(4 A C\), Inc., on the company's

a. total assets

b. total liabilities.

c. net income or net loss for October.

Transcribed Image Text:

Cash....... $ 3,900 Common shares. $24,100 Accounts receivable. Land.... 7,100 Retained earnings. 1,700 30,100 Service revenue 9,400 Accounts payable.... 6,200 Salary expense. 2,900 Note payable...... 5,900 Advertising expense.... 1,400