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(10 Marks) The following trial balance for XYZ Corporation does not balance. You have conducted an extensive review to find the nature of the problem.
(10 Marks) The following trial balance for XYZ Corporation does not balance. You have conducted an extensive review to find the nature of the problem. Below the trial balance is information about six errors you have discovered. Use this additional information to prepare a corrected trial balance show your rectification both in the ledger and finally in the trail balance. XYZ CORPORATION Trial Balance December 31, 2018 Debits (RO.) Credits (RO.) Cash 123,432 Accounts Receivable 76,409 Land 688,004 Accounts Payable 32,611 Loan Payable 76,400 Capital Stock 340,000 Retained Earnings 456,332 Revenues 879.998 Wages Expense 575,988 Rent Expense 112,654 Interest Expense 4.654 Dividends 9,000 326,149 3,049,333 Instructions: i. All accounts have normal balances, but two amounts are in wrong columns. ii. Services provided on account for RO. 1,500 was debited to Accounts Payable and credited to Revenues. iii. Supplies Expense of RO. 104,300 was completely omitted from the trial balance. iiii. The amount recorded for Revenues was transposed. It should have been RO. 789,998. V. A RO. 5,000 shareholder investment was debited to Cash and credited to Dividends. vi. An interest payment of RO. 1,000 was debited to Loan Payable for RO. 100 and credited to Cash for RO. 1,000
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