I am currently working on a course: Acct 253 and reviewing trial balances. I came across this question which is giving me a very hard time to understand. Maybe you can help with this?
A collection from a customer for $370 was debited to Cash for $370 and credited to Accounts Payable for $370
The trial balance for Softouch Co. shown below does not balance. Each of the listed accounts has a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors: a) A credit posting to Unearned Consulting Revenue of $450 was omitted. b) A payment of a balance due for $380 was credited to Cash for $380 and debited to Accounts Payable for $830. c) A collection from a customer for $370 was debited to Cash for $370 and credited to Accounts Payable for $370. d) Cash received from a customer in payment of their account was debited for $350, and Accounts Receivable was credited for the same amount. The actual collection was for $530. e) Cash dividends of $390 was debited to the Share Capital account for $390 and credited to Cash for $390. f) A Cash payment of $600 for rent was debited to Rent Expense for $620 and credited to Cash for $620. g) The totals of the credit sides of Interest Earned, Commissions Earned, and Consulting Revenue Earned were each understated $360. Accounts from incorrect Trial Balance. Complete the corrected Trial Balance below: Account Balance Softouch Co. Cash 31,300 Trial Balance Accounts receivable. 9,550 July 31, 2014 Prepaid rent 4,500 Debit Credit Furniture. 16,700 Cash 31,300 Accounts payable. 1,420 Accounts receivable 10,000 Interest payable. 6,000 Prepaid rent. 4,500 Unearned consulting revenue 6,450 Furniture 16,700 Unearned rent 10,500 Accounts payable. 970 Share capital 11,010 Interest payable. 6,000 Dividends 20,410 Unearned consulting revenue 6,900 Consulting revenue earned 8,640 Unearned rent. 10,500 Commissions earned 23,640 Share capital. 11,010 Rent earned. 16,500 Dividends. 20,410 Interest earned 20, 140 Consulting revenue earned. 8,640 Insurance expense. 4,500 Commissions earned 23,640 Rent expense 2,820 Rent earned 16,500 Office supplies expense. 9,000 Interest earned. 20, 140 Advertising expense. 3,000 Insurance expense 4,500 Utilities expense. 4,500 Rent expense. 2,820 Office supplies expense. 9,000 Advertising expense. 3,000 Utilities expense. 4,500 Totals
