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1 Question 1 (21 marks) a) Jamie has prepared the following trial balance and doesn't know why it does not balance. She also knows it
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Question 1 (21 marks) a) Jamie has prepared the following trial balance and doesn't know why it does not balance. She also knows it is out of order but cannot remember her account classifications. Prepare a corrected trial balance for her using the information provided below: (18 marks) Trial balance of Muddled Ltd as at 31 December 2021 DR CR Mobile phone expenses $1.700 GST Clearing $3.100 Cash at Bank $15,600 Accounts receivable $10,100 Accounts payable $8,560 Marketing costs S12.200 Office equipment $47.000 Inventories $2,000 Rent expense 59.850 Computers $36,450 Loan $23.000 Cost of Goods Sold $85.340 Sales S215.000 Salaries & wages $79.000 Interest expense $1.200 Motor Vehicle $35,000 $196,040 $389,060 Other information you have gathered includes: The accounts receivable balance should be $9,100 The bank account is in overdraft The GST amount is owed to the tax office The capital balance needs to be calculated Travel expenses of $5,600 are missing and so are drawings of $2,000 The interest expense amount is actually interest revenue The motor vehicle is a private vehicle that does not belong to the business Step by Step Solution
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