Marc Miller prepared the following trial balance from the ledger of the Quick-Fix TV Repair Company. The trial balance did not balance.

Required Marc Miller prepared the following trial balance from the ledger of the Quick-Fix TV Repair Company. The trial balance did not balance.
QUICK-FIX TV REPAIR COMPANY Trial Balance December 31, 1999 \begin{tabular}{|c|c|c|c|}
\hline \begin{tabular}{l}
Acct. \\
No.
\end{tabular} & Account Title & Debits & Credits \\
\hline 100 & Cash & \(\$ 69,200\) & \\
\hline 103 & Accounts Receivable & 60,800 & \\
\hline 160 & Office Furniture & 120,000 & \\
\hline 172 & Office Equipment & 48,000 & \\
\hline 200 & Accounts Payable & & \(\$ 32,400\) \\
\hline 300 & Capital Stock . & & 180,000 \\
\hline 310 & Retained Earnings & & 80,000 \\
\hline 320 & Dividends . . . . & 28,800 & \\
\hline 400 & Service Revenue. & & 360,000 \\
\hline 507 & Salaries Expense. & 280,000 & \\
\hline 515 & Rent Expense & 40,000 & \\
\hline \multirow[t]{2}{*}{568} & Miscellaneous Expense & 7,200 & \\
\hline & & \(\$ 654,000\) & \(\$ 652,400\) \\
\hline \end{tabular}
The difference in totals in the trial balance caused Miller to carefully examine the company's accounting records. In searching back through the accounting records, Miller found that the following errors had been made:
1. One entire entry that included a \(\$ 10,000\) debit to Cash and a \(\$ 10,000\) credit to Accounts Receivable was never posted.
2. In computing the balance of the Accounts Payable account, a credit of \(\$ 3,200\) was omitted from the computation.
3. In preparing the trial balance, the Retained Earnings account balance was shown as \(\$ 80,000\). The ledger account has the balance at its correct amount of \(\$ 83,200\).
4. One debit of \(\$ 2,400\) to the Dividends account was posted as a credit to that account.
5. Office equipment of \(\$ 12,000\) was debited to Office Furniture when purchased.
Prepare a corrected trial balance for the Quick-Fix TV Repair Company as of December 31, 1999. Also, write a description of the effect(s) of each error.

Transcribed Image Text:

QUICK-FIX TV REPAIR COMPANY Trial Balance December 31, 1999 Acct. No. Account Title 100 Cash Debits Credits $ 69,200 103 Accounts Receivable 160 Office Furniture 60,800 120,000 172 Office Equipment 48,000 200 Accounts Payable $ 32,400 300 Capital Stock 180,000 310 Retained Earnings 80,000 320 Dividends.. 28,800 400 Service Revenue.. 360,000 507 Salaries Expense. 515 Rent Expense. 280,000 40,000 568 Miscellaneous Expense. 7,200 $654,000 $652,400