Exercise 3-3

The trial balance of Blues Traveler Corporation does not balance.

BLUES TRAVELER CORPORATION

TRIAL BALANCE

APRIL 30, 2014

Debit

Credit

Cash$6,234Accounts Receivable5,401Supplies3,128Equipment6,261Accounts Payable$7,205Common Stock8,161Retained Earnings2,161Service Revenue5,361Office Expense4,481$25,505

$22,888

An examination of the ledger shows these errors.

1.Cash received from a customer on account was recorded (both debit and credit) as $1,541 instead of $1,991.2.The purchase on account of a computer costing $2,880 was recorded as a debit to Office Expense and a credit to Accounts Payable.3.Services were performed on account for a client, $2,411, for which Accounts Receivable was debited $2,411 and Service Revenue was credited $386.4.A payment of $256 for telephone charges was entered as a debit to Office Expense and a debit to Cash.5.The Service Revenue account was totaled at $5,361 instead of $5,441.

From this information, prepare a corrected trial balance.

Blues Traveler Corporation

Trial Balance (Corrected)

April 30, 2014

Debit

Credit

$

$

Totals$

$