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

Cash
Bal.	8,000	3/3	2,300
3/25	7,425	3/27	1,300
3/28	4,500	3/29	3,475
3/30	7,900	3/31	1,950

Accounts Receivable
Bal.	1,950
3/18	9,875	3/30	7,900

Supplies
Bal.	225
3/7	1,450

Office Equipment
3/2	19,000

Accounts Payable
3/27	1,300	Bal.	1,250
		3/7	1,450

Notes Payable
		3/2	19,000

Common Stock
		Bal.	7,500
		3/28	4,500

Retained Earnings
		Bal.	1,425

Dividends
3/31	1,950

Fees Earned
		3/18	9,875
		3/25	7,425

Rent Expense
3/3	2,300

Wages Expense
3/29	3,475

Required:

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 equipment, giving a note payable for the purchase price.		$fill in the blank bc171a04000a034_2
Paid rent for April.		$fill in the blank bc171a04000a034_6
Purchased supplies on account.		$fill in the blank bc171a04000a034_10
Recorded fees earned on account.		$fill in the blank bc171a04000a034_14
Received cash for fees earned.		$fill in the blank bc171a04000a034_18
Paid creditors on account.		$fill in the blank bc171a04000a034_22
KL Company Inc. issued additional shares of common stock in exchange for cash.		$fill in the blank bc171a04000a034_26
Paid wages.		$fill in the blank bc171a04000a034_30
Received cash from customers on account.		$fill in the blank bc171a04000a034_34
KL Company Inc. paid dividends to its stockholders.		$fill in the blank bc171a04000a034_38

Trial Balance: Unequal Totals

The intern has prepared the following trial balance for the month of March.

KL Company Inc. Unadjusted Trial Balance March 31, 20Y3
Account Title	Debit Balances	Credit Balances
Cash	23,400
Accounts Receivable		3,925
Supplies	1,675
Office Equipment	19,000
Accounts Payable	1,400
Notes Payable		19,000
Common Stock		12,000
Retained Earnings	1,425
Dividends		1,950
Fees Earned		9,875
Rent Expense	3,200
Wages Expense		3,475
	50,100	50,225

Trial 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.

KL Company Inc. Unadjusted Trial Balance March 31, 20Y3
Account Title	Debit Balances	Credit Balances
Cash	fill in the blank 05023e07df8903f_1	fill in the blank 05023e07df8903f_2
Accounts Receivable	fill in the blank 05023e07df8903f_3	fill in the blank 05023e07df8903f_4
Supplies	fill in the blank 05023e07df8903f_5	fill in the blank 05023e07df8903f_6
Office Equipment	fill in the blank 05023e07df8903f_7	fill in the blank 05023e07df8903f_8
Accounts Payable	fill in the blank 05023e07df8903f_9	fill in the blank 05023e07df8903f_10
Notes Payable	fill in the blank 05023e07df8903f_11	fill in the blank 05023e07df8903f_12
Common Stock	fill in the blank 05023e07df8903f_13	fill in the blank 05023e07df8903f_14
Retained Earnings	fill in the blank 05023e07df8903f_15	fill in the blank 05023e07df8903f_16
Dividends	fill in the blank 05023e07df8903f_17	fill in the blank 05023e07df8903f_18
Fees Earned	fill in the blank 05023e07df8903f_19	fill in the blank 05023e07df8903f_20
Rent Expense	fill in the blank 05023e07df8903f_21	fill in the blank 05023e07df8903f_22
Wages Expense	fill in the blank 05023e07df8903f_23	fill in the blank 05023e07df8903f_24
	fill in the blank 05023e07df8903f_25	fill in the blank 05023e07df8903f_26

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.

Error Type

Cash

Accounts Receivable

Supplies

Office Equipment

Accounts Payable

Notes Payable

Common Stock

Retained Earnings

Dividends

Fees Earned

Rent Expense

Wages Expense

Transposition

Incorrectly reported as a debit

Incorrectly reported as a credit

Balance computed 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
$fill in the blank 9549d0f5b05d048_1	=	$fill in the blank 9549d0f5b05d048_2	+	$fill in the blank 9549d0f5b05d048_3

Still puzzled, the intern asks "Why do none of the amounts in the accounting equation equal the totals on the trial balance?"

a.	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.
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.