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B C D E Beautiful Tots Day Care 2 Trial Balance 3 31- August 18 4 Balance 5 Account Debit Credit 6 7 Cash 8
B C D E Beautiful Tots Day Care 2 Trial Balance 3 31- August 18 4 Balance 5 Account Debit Credit 6 7 Cash 8 Accounts receivable 9 Office Supplies 10 Pre paid insurance 11 Equipment 12 Accounts payable 13 Notes Payable 14 Trumball, capital 15 Trumball, Withdrawals 16 Service revenue 17 Service expense 18 Rent expense 19 20 21P2-33A Correcting errors in a trial balance The trial balance of Beautiful Tots Child Care does not balance. BEAUTIFUL TOTS CHILD CARE Trial Balance August 31, 2018 Balance Account Title Debit Credit Cash $ 7,900 Accounts Receivable 6,700 Office Supplies 1,000 Prepaid Insurance 300 Equipment 91,500 Accounts Payable $ 3,400 Notes Payable 45,000 Trumball, Capital 57,000 Trumball, Withdrawals 5,000 Service Revenue 12,350 Salaries Expense 4.400 Rent Expense 750 Total $ 117,550 $ 117,750 The following errors are detected: a. Cash is understated by $1,500. b. A $4,100 debit to Accounts Receivable was posted as a credit. c. A $1,400 purchase of office supplies on account was neither journalized nor posted. d. Equipment was incorrectly transferred from the ledger as $91,500. It should have been transferred as $83,000. e. Salaries Expense is overstated by $700. f. A $300 cash payment for advertising expense was neither journalized nor posted. g. A $200 owner's withdrawal of cash was incorrectly journalized as $2,000. h. Service Revenue was understated by $4,100. i. A 12-month insurance policy was posted as a $1,900 credit to Prepaid Insurance. Cash was posted correctly. Prepare the corrected trial balance as of August 31, 2018. Journal entries are not required
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