account: Prepaid Insurance 145 400 Cash 101 MANAGING YOUR WRITING Managing Plannin Draft Break Revising Managin You are a public accountant with many small business clients. During a recent visit to a client's business, the bookkeeper approached you with a problem. The columns of he trial balance were not equal. You helped the bookkeeper find and correct the error, but believe you should go one step further. Write a memo to all of your clients that explains the purpose of the double-entry framework, the importance of maintaining the equality of the accounting equation, the errors that might cause an inequality, and suggestions for finding the errors. MASTERY PROBLEM Barry Bird opened the Barry Bird Basketball Camp for children ages 10 through 18. Campers typically register for one week in June or July, arriving on Sunday and returning home the following Saturday. College players serve as cabin counselors and assist the local college and high school coaches who run the practice sessions. The registration fee includes a room, meals at a nearby restaurant, and basketball instruc- tion. In the off-season, the facilities are used for weekend retreats and coaching clinics. Bird developed the following chart of accounts for his service business: bal, June 30: $45,495 l bal total debits: $96,200 GL Chart of Accounts Assets 101 Cash 142 Office Supplies 183 Athletic Equipment 184 Basketball Facilities Revenues 401 Registration Fees Expenses 511 Wages Expense 512 Advertising Expense 524 Food Expense 525 Phone Expense 533 Utilities Expense 536 Postage Expense Liabilities 202 Accounts Payable Owner's Equity 311 Barry Bird, Capital 312 Barry Bird, Drawing (continued)