This trial balance for Glasgow Pty Ltd does not balance. 

Each of the listed accounts has a normal balance. An examination of the ledger and journal reveals the following errors: 

1. Cash received from a customer on account was debited to Cash for $1680 and Accounts Receivable was credited for the same amount. The actual collection was for $960.

2. The purchase of a printer on account for $440 was recorded as a debit to Supplies for $440 and a credit to Accounts Payable for $440.

3. Services were performed on account by a client for $1280. Accounts Receivable was debited $1280 and Service Revenue was credited $128.

4. A debit posting to Salaries Expense of $1800 was omitted.

5. A payment made on account for $818 was credited to Cash for $818 and credited to Accounts Payable for $980.

6. Payment of a $1200 cash dividend to shareholders was debited to Salaries Expense for $1200 and credited to Cash for $1200.

Required

(a) Prepare the correct trial balance.

(b) Explain what adjustments were made and why they were necessary.

Transcribed Image Text:

Account name Cash Accounts Receivable Supplies Equipment Accounts Payable Revenue Received in Advance Share Capital Dividends Service Revenue Salaries Expense Office Expense GLASGOW PTY LTD Trial balance as at 31 December 2015 Debit $ 9736 3640 9560 3 200 1 200 12600 4820 $44756 Credit $7804 10798 18000 19808 $56410