1. The following events apply to Equipment Services Inc. in its first year of operation:

1. Acquired $60,000 cash from the issue of common stock.
2. Received an $8,200 cash advance for services to be provided in the future.
3. Purchased $2,000 of supplies on account.
4. Earned $36,000 of service revenue on account.
5. Incurred $16,100 of operating expenses on account.
6. Collected $28,500 cash from accounts receivable.
7. Made a $15,100 payment on accounts payable.
8. Paid a $2,000 cash dividend to stockholders.
9. Recognized $1,600 of supplies expense.
10. Recorded $3,100 of accrued salaries expense.
11. Recognized $3,100 of revenue for services provided to the customer in Event 2. a. Record the events in T-accounts and determine the ending account balances. b. Test the equality of the debit and credit balances of the T-accounts by preparing a trial balance.

Required

Test the equality of the debit and credit balances of the T-accounts by preparing a trial balance.

EQUIPMENT SERVICES, INC.
Trial Balance
As of December 31 year 1
Account Titles	Debit	Credit
Totals	$0	$0

2. The following trial balance was prepared from the ledger accounts of Ricardo Company:

RICARDO COMPANY Trial Balance April 30, Year 1
Account Titles	Debit			Credit
Cash	$	70,900
Accounts receivable		34,000
Supplies		2,200
Prepaid insurance		4,000
Land				$	12,500
Accounts payable					10,000
Common stock					100,000
Retained earnings					28,930
Dividends		8,400
Service revenue					67,000
Rent expense		10,000
Salaries expense		32,300
Operating expense		33,200
Totals	$	195,000		$	218,430

When the trial balance failed to balance, the accountant reviewed the records and discovered the following errors:

1. The company received $580 as payment for services rendered. The credit to Service Revenue was recorded correctly, but the debit to Cash was recorded as $730. 2. A $1,100 receipt of cash that was received from a customer on accounts receivable was not recorded. 3. A $1,420 purchase of supplies on account was properly recorded as a debit to the Supplies account. However, the credit to Accounts Payable was not recorded. 4. Land valued at $12,500 was contributed to the business in exchange for common stock. The entry to record the transaction was recorded as a $12,500 credit to both the Land account and the Common Stock account. 5. A $700 rent payment was properly recorded as a credit to Cash. However, the Salaries Expense account was incorrectly debited for $700. Required Prepare a corrected trial balance for Ricardo Company.

RICARDO COMPANY
Trial Balance
As of April 30, Year 1
Account Titles	Debit	Credit
Total