Cash
Bal.	8,000.00	3/3	2,300.00
3/25	7,650.00	3/27	1,250.00
3/28	6,500.00	3/29	3,425.00
3/30	8,050.00	3/31	1,950.00

Accounts Receivable
Bal.	1,950.00
3/18	10,025.00	3/30	8,050.00

Supplies
Bal.	225.00
3/7	1,500.00

Office Equipment
3/2	16,500.00

Accounts Payable
3/27	1,250.00	Bal.	1,250.00
		3/7	1,500.00

Notes Payable
		3/2	16,500.00

Common Stock
		Bal.	7,500.00
		3/28	6,500.00

Retained Earnings
		Bal.	1,425.00

Dividends
3/31	1,950.00

Fees Earned
		3/18	10,025.00
		3/25	7,650.00

Rent Expense
3/3	2,300.00

Wages Expense
3/29	3,425.00

Transactions

Descriptions of the transactions for the month of March are provided in the following table. Each of the transactions that follow has been posted to the T accounts. Referring to the T accounts, select the date on which each transaction occurred, enter the amount of the transaction, and select the account to debit and credit.

Transaction	Date	Amount	Debit	Credit
KL Company Inc. paid dividends to its stockholders.
Received cash for fees earned.
Paid creditors on account.
Paid wages.
Recorded fees earned on account.
Received cash from customers on account.
Purchased supplies on account.
Paid rent for April.
KL Company Inc. issued additional shares of common stock in exchange for cash.
Purchased equipment, giving a note payable for the purchase price.

Trial Balance: Unequal Totals

The intern has prepared the following trial balance for the month of March.

KL Company Inc.

UNADJUSTED TRIAL BALANCE

March 31, 2017

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	25,875.00
2	Accounts Receivable		3,925.00
3	Supplies	1,725.00
4	Office Equipment	16,500.00
5	Accounts Payable	1,500.00
6	Notes Payable		16,500.00
7	Common Stock		14,000.00
8	Retained Earnings	1,425.00
9	Dividends		1,950.00
10	Fees Earned		10,025.00
11	Rent Expense	3,200.00
12	Wages Expense		3,425.00
13	Totals	50,225.00	49,825.00

Trial Balance: Correct

The trial balance prepared by the intern can be found in the Trial Balance: Unequal Totals panel. The intern is puzzled by the unequal totals. Prepare a corrected trial balance.

KL Company Inc.

UNADJUSTED TRIAL BALANCE

March 31, 2017

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash
2	Accounts Receivable
3	Supplies
4	Office Equipment
5	Accounts Payable
6	Notes Payable
7	Common Stock
8	Retained Earnings
9	Dividends
10	Fees Earned
11	Rent Expense
12	Wages Expense
13	Totals

Errors In Trial Balance

Compare the trial balance prepared by the intern (Trial Balance: Unequal Totals) to the trial balance that you prepared (Trial Balance: Correct). In the following table, select the accounts for each type of error. Not all accounts contain errors.

Error Type	Cash	Accounts	Supplies	Office Equipment	Accounts	Notes	Common	Retained		Fees	Rent	Wages
		Receivable			Payable	Payable	Stock	Earnings	Dividends	Earned	Expense	Expense
Transposition
Incorrectly reported as a debit
Incorrectly reported as a credit
Balance computed incorrectly

Accounting Equation

The intern is puzzled and asks Are you sure the accounting equation is still in balance? Using the corrected trial balance you prepared, prove that the accounting equation is in balance.

Assets	=	Liabilities	+	Stockholders Equity
	=		+

Still puzzled, the intern asks Why do none of the amounts in the accounting equation equal the totals on the trial balance? Check all that apply.

The accounts that make up the total for stockholders equity have a mix of debit and credit balances.

You point out the total of the assets, liabilities and stockholders equity is equal to the sum of the debit and credit totals in the trial balance.

The accounts with debit balances are not all classified in the same element of the accounting equation. For example, not all accounts with debit balances are assets.

The accounts with credit balances are not all classified in the same element of the accounting equation. For example, not all accounts with credit balances are liabilities.

This is because the revenue and expense accounts are part of the stockholders equity element. The accounts with debit balances should be part of the total assets.