Errors on Trial Balance Referring to the T accounts, select the date on which each transaction occurred, enter the amount of the transaction, and to dehit and credit. Mastery Problem: Analyzing Transactions KL Company Inc. In February, Katie Long formed KL Company Inc. Transactions for the month of March have been posted to the T accounts. An intern has prepared a trial balance from the T accounts, but there seem to be some errors. T accounts 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. Office Equipment 3/2 17,000 Accounts Payable \begin{tabular}{l|ll} \hline 1,275 & Bal. & 1,250 \\ & 3/7 & 1,600 \end{tabular} Notes Payable 3/217,000 Common Stock \begin{tabular}{|ll} \hline Bal. & 7,500 \\ 3/28 & 4,500 \end{tabular} Retained Earnings Bal. 1,425 Dividends 3/31 1,950 Check My Work KL Company Inc. Unadjusted Trial Balance March 31, 20Y3 I rial Balance: Correct The Trial Balance: Unequal Totals was prepared by the intern. The intern is puzzled by the unequal totals. Prepare a corrected trial balance. If an amount box does not require an entry, leave it blank. Notes Payable \begin{tabular}{l|ll} \hline & 3/2 & 17,000 \end{tabular} \begin{tabular}{l|ll} Common Stock \\ \hline & Bal. & 7,500 \\ & 3/28 & 4,500 \end{tabular} \begin{tabular}{c} \multicolumn{4}{c}{ Retained Earnings } \\ \hline \multicolumn{1}{|c|}{ Bal. } \\ \hline Dividends \\ \hline 3/311,950 \end{tabular} Check My Work Errors on 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. 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. 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. Still puzzled, the intern asks "Why do none of the amounts in the accounting equation equal the totals on 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 a. debit balances are assets. b. 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. c. You point out the total of the assets, liabilities and stockholders' equity is equal to the sum of the debit and credit totals on the trial balance. d. 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. e. The accounts that make up the total for stockholders' equity have a mix of debit and credit balances