This was the trial balance for Maxx Services, Inc., at the end of July: The trial balance

Question:

This was the trial balance for Maxx Services, Inc., at the end of July:

image text in transcribed

The trial balance does not balance because of a number of errors. Maxx's accountant compared the amounts in the trial balance with the ledger, recomputed the account bal- ances, and compared the postings. He found the following errors:

a. The balance of Cash was understated by $200.

b. A cash payment of $210 was credited to Cash for $120.

c. A debit of $60 to Accounts Receivable was not posted.

d. Supplies purchased for $30 were posted as a credit to Supplies.

e. A debit of $90 to Prepaid Insurance was not posted.
f The Accounts Payable account had debits of $2,660 and credits of $4,590.
g. The Notes Payable account, with a credit balance of $1,200, was not included on the trial balance.
h. The debit balance of Dividends was listed in the trial balance as a credit.
i. A $100 debit to Dividends was posted as a credit.
j. The actual balance of Utilities Expense, $130, was listed as $13 in the trial balance.
Prepare a corrected trial balance.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting

ISBN: 9780618310746

8th Edition

Authors: Belverd E. Needles Jr,, Marian Powers

Question Posted: