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.

	Required:
1.	In the Transactions panel, descriptions of the transactions for the month of March are provided. Each of the transactions in the Transactions panel has been posted 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.
2.	The trial balance prepared by the intern can be found in the Trial Balance: Unequal Totals panel. The intern is puzzled by the unequal totals. Prepare a corrected trial balance on the Trial Balance: Correct panel.
3.	Compare the trial balance prepared by the intern (Trial Balance: Unequal Totals) to the trial balance that you prepared (Trial Balance: Correct). Use the table provided in the Errors in Trial Balance panel to select the accounts for each type of error.
4.	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? Explain.

COD 3.000.00 33 2.500.00 1575.00 227 12/5.00 30 DODO 1.825.00 330 331 100 Accountable 190.00 3:30 7.825.00 LODO 32 $7.500.00 Account 2 1.2/5.00 1.250.00 23 1.800.00 Notable 32 1 500.00 Canentech .. 11/25 500 red T 425.00 Dividence indandi 331 1,975.00 u tar 18 2.875.00 Heren 230000 Ww Exp Transactions Descriptions of the transactions for the month of March are provided in the following table. Each of the transactions that follow has been posted 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. Transaction Date Amount Debit Credit $ Purchased supplies on account. KL Company Inc. paid dividends to its stockholders. $ Paid creditors on account. $ IKK Received cash from customers on account. $ KL Company Inc. issued additional shares of common stock in $ exchange for cash Paid rent for April $ Purchased equipment, giving a note payable for the purchase $ price Recorded fees earned on account. $ Received cash for fees earned. $ 111 Paid wages $ Trial Balance: Unequal Totals UNADJUSTED TRIAL BALANCE March 31, 2017 ACCOUNT TITLE DEBIT CREDIT 1 Cash 23,825.00 2 Accounts Receivable 4,000.00 1,825.00 17,500.00 3 Supplies 4 Office Equipment 5 Accounts Payable 6 Notes Payable 7 Common Stock 1,575.00 17,500.00 12,500.00 8 Retained Earnings 1,425.00 9 Dividends 1,975.00 10 Fees Earned 9,875.00 11 Rent Expense 3,200.00 12 Wages Expense 3,625.00 13 Totals 49,350.00 49,475.00 Trial Balance: Correct UNADJUSI CU INIAL DALANCE March 31, 2017 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Accounts Receivable 3 Supplies 4 Office Equipment 5 Accounts Payable 6 Notes Payable 7 Common Stock & Retained Earnings 9 Dividends 10 Fees Earned 11 Rent Expense 12 Wages Expense 13 Totals 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 typ of error. Not all accounts contain errors. Fees Accounts Receivable Error Type Office Equipment Accounts Payable Notes Payable Common Stock Retained Earnings Rent Expense Wages Expense Cash Supplies Dividends Earned Transposition U Incorrectly reported as a debit Incorrectly reported as a credit Balance computed C L 0 U incorrectly 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 Assets Liabilities Stockholders' Equity. $ $ Still puzzled, the intern asks "Why do none of the amounts in the accounting equation equal the totals on the trial balance?" Check all that apply. You point out the total of the assets, liabilities and stockholders' equity is equal to the sum of the debit and credit totals in the trial balance. The accounts that make up the total for stockholders' equity have a mix of debit and credit balances. 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. 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. The accounts with debit balances are not all classified in the same element of the accounting equation. For example, not all accounts with debit balances are assets. COD 3.000.00 33 2.500.00 1575.00 227 12/5.00 30 DODO 1.825.00 330 331 100 Accountable 190.00 3:30 7.825.00 LODO 32 $7.500.00 Account 2 1.2/5.00 1.250.00 23 1.800.00 Notable 32 1 500.00 Canentech .. 11/25 500 red T 425.00 Dividence indandi 331 1,975.00 u tar 18 2.875.00 Heren 230000 Ww Exp Transactions Descriptions of the transactions for the month of March are provided in the following table. Each of the transactions that follow has been posted 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. Transaction Date Amount Debit Credit $ Purchased supplies on account. KL Company Inc. paid dividends to its stockholders. $ Paid creditors on account. $ IKK Received cash from customers on account. $ KL Company Inc. issued additional shares of common stock in $ exchange for cash Paid rent for April $ Purchased equipment, giving a note payable for the purchase $ price Recorded fees earned on account. $ Received cash for fees earned. $ 111 Paid wages $ Trial Balance: Unequal Totals UNADJUSTED TRIAL BALANCE March 31, 2017 ACCOUNT TITLE DEBIT CREDIT 1 Cash 23,825.00 2 Accounts Receivable 4,000.00 1,825.00 17,500.00 3 Supplies 4 Office Equipment 5 Accounts Payable 6 Notes Payable 7 Common Stock 1,575.00 17,500.00 12,500.00 8 Retained Earnings 1,425.00 9 Dividends 1,975.00 10 Fees Earned 9,875.00 11 Rent Expense 3,200.00 12 Wages Expense 3,625.00 13 Totals 49,350.00 49,475.00 Trial Balance: Correct UNADJUSI CU INIAL DALANCE March 31, 2017 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Accounts Receivable 3 Supplies 4 Office Equipment 5 Accounts Payable 6 Notes Payable 7 Common Stock & Retained Earnings 9 Dividends 10 Fees Earned 11 Rent Expense 12 Wages Expense 13 Totals 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 typ of error. Not all accounts contain errors. Fees Accounts Receivable Error Type Office Equipment Accounts Payable Notes Payable Common Stock Retained Earnings Rent Expense Wages Expense Cash Supplies Dividends Earned Transposition U Incorrectly reported as a debit Incorrectly reported as a credit Balance computed C L 0 U incorrectly 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 Assets Liabilities Stockholders' Equity. $ $ Still puzzled, the intern asks "Why do none of the amounts in the accounting equation equal the totals on the trial balance?" Check all that apply. You point out the total of the assets, liabilities and stockholders' equity is equal to the sum of the debit and credit totals in the trial balance. The accounts that make up the total for stockholders' equity have a mix of debit and credit balances. 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. 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. The accounts with debit balances are not all classified in the same element of the accounting equation. For example, not all accounts with debit balances are assets