Exercise 254

The trial balance of the Gavin Company shown below does not balance.

GAVIN COMPANY Trial Balance June 30, 2017
		Debit		Credit
Cash		$5,600
Accounts Receivable		7,600
Supplies		600
Equipment		8,300
Accounts Payable				$12,766
Common Stock				1,941
Dividends		1,500
Service Revenue				15,200
Salaries and Wages Expense		3,800
Maintenance and Repairs Expense		1,600
Totals		$29,000		$29,907

An examination of the ledger and journal reveals the following errors:

1.		Each of the above listed accounts has a normal balance per the general ledger.
2.		Cash of $350 received from a customer on account was debited to Cash $530 and credited to Accounts Receivable $530.
3.		Dividends of $300 paid to stockholders were posted as a credit to Dividends, $300, and a credit to Cash $300.
4.		Salaries and Wages Expense of $300 was omitted from the trial balance.
5.		The purchase of equipment on account for $700 was recorded as a debit to Maintenance and Repairs Expense and a credit to Accounts Payable for $700.
6.		Services were performed on account for a customer, $510, for which Accounts Receivable was debited $510 and Service Revenue was credited $51.
7.		A payment on account for $215 was credited to Cash for $215 and credited to Accounts Payable for $251.

Prepare a correct trial balance