This trial balance of Helpful Services 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 $1140, and Accounts Receivable was credited for the same amount. The actual collection was for $1500. 

2. The purchase of a printer on account for $680 was recorded as a debit to Supplies for $680 and a credit to Accounts Payable for $680.

3. Services were performed on account by a client for $1780. Accounts Receivable was debited for $1780 and Service Revenue was credited for $178.

4. A debit posting to Salaries Expense of $1200 was omitted.

5. A payment on account for $412 was credited to Cash for $412 and credited to Accounts Payable for $520.

6. Payment of a $800 cash dividend to shareholders was debited to Salaries Expense for $800 and credited to Cash for $800.

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 HELPFUL SERVICES LTD Trial balance as at 30 June 2015 Equipment Accounts Payable Revenue Received in Advance Share Capital Dividends Rental Revenue Salaries Expense Office Expense Debit $ 6462 1 600 6000 2 400 1 600 6800 1820 $26 682 Credit $5680 5332 18 000 4760 $33 772