Errors in trial balance The following preliminary unadjusted trial balance of Ranger Co., a sports ticket agency, does not balance: Cash Ranger Co. Unadjusted Trial Balance August 31, 20Y1 Debit Balances Credit Balances 53,860 25,310 Accounts Receivable Prepaid Insurance 9,100 Equipment 8,500 Accounts Payable 14,760 Unearned Rent 3,290 Common Stock 40,940 Retained Earnings 51,700 Dividends 11,300 Service Revenue 95,330 Wages Expense 47,800 Advertising Expense 8,190 Miscellaneous Expense 1,620 Totals 199,800 171,900 When the ledger and other records are reviewed, you discover the following: (1) the debits and credits in the cash account total $53,860 and $38,670, respectively; (2) a billing of $2,850 to a customer on account was not posted to the accounts receivable account; (3) a payment of $2,050 made to a creditor on account was not posted to the accounts payable account; (4) the balance of the unearned rent account is $5,680; (5) the correct balance of the equipment account is $85,000; and (6) each account has a normal balance. Prepare a corrected unadjusted trial balance. For those boxes in which no entry is required, leave the box blank. Ranger Co. Unadjusted Trial Balance August 31, 20Y1 Line Item Description Cash Accounts Receivable Prepaid Insurance Equipment Accounts Payable Unearned Rent Common Stock Retained Earnings Dividends Service Revenue Wages Expense Advertising Expense Miscellaneous Expense Total Feedback Debit Credit Balances Balances Check My Work As you prepare this unadjusted trial balance, ask yourself these questions about the six discovered items as you prepare the corrected version: (1) How is it possible to increase (debit) cash by $53,860 and decrease (credit) cash by $38,670 and still have a normal debit balance of $53,860? (2) Though the billing transaction may have been handled incorrectly, did it cause the debit and credit column totals to be unequal? (3) Though the payment may have been handled incorrectly, did it cause the debit and credit column totals to be unequal? (4) Unearned rent is a liability until it has been earned as revenue. (5) It is common to omit ending zeros. (6) Finally, double-check to see that all accounts have normal balances that make sense.