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.

Cash Bal. 2,300 3/25 1,200 8,000 3/3 7,425 3/27 6,000 3/29 7,825 3/31 3/28 3,525 3/30 1,850 Accounts Receivable Bal. 1,950 3/18 9,725 3/30 7,825 Supplies Bal. 225 3/7 1,650 Office Equipment 3/2 17,000 Accounts Payable 3/27 1,200 Bal. 1,250 3/7 1,650 Notes Payable 3/2 17,000 Common Stock Bal. 7,500 3/28 6,000 Retained Earnings Bal. 1,425 Dividends 3/31 1,850 Fees Earned 3/18 9,725 3/25 7,425 Rent Expense 3/3 2,300 Wages Expense 3/29 3,525 Required: Descriptions of the transactions for the month of March are provided in the following table, ach of the transactions that follow has been posted to the accounts Referring to the accounts, sele transaction, and select the account to debit and credit Transaction Date Amount Debat Credit 3/2 y Y Purchased equipment, giving a note payable for the purchase price Paid rent for April Purchased supplies on account Recorded fees earned on account. Received cash for fees camed. 3/3 3/2 17,000 Office Equipment 2,100 Rent Expense 1.650 Supplies 9,725 Accounts Payable 7.425 Cash 1/10 Paid creditors on account. 3/25 3/22 3/20 1,200 Accounts Payable KL Company Inc. issued additional shares of common stock in exchange for cash 6.000 Cash Paid wages 3/29 3,525 Wages Expense Received cash from customers on account. 3/30 $ 7,825 Casti KL Company Inc. paid dividends to its stockholders 3/31 5 1,850 Dividends 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 24,975 Accounts Receivable 3,850 Supplies 1,875 Office Equipment 17,000 Accounts Payable 1,700 Notes Payable 17,000 Common Stock 13,500 Retained Earnings 1,425 Dividends 1,850 Fees Earned 9,725 Rent Expense 3,200 Wages Expense 3,525 50,175 49,450 Trial Balance: Correct 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 ba KL Company Inc. Unadjusted Trial Balance March 31, 2013 Account Title Debit Balances Credit Balances Cash Accounts Receivable Supplies Office Equipment Accounts Payable Notes Payable Common Stock Retained Earnings Dividends Fees Earned Rent Expense Wages Expense Compare the trial balance prepared by the intem (Thal Balance: Unequal Totals) to the trial balance that you prepared (Trial Balance: Correct). In the following table select Error Type Accounts Cash Receivable Supplies Office Equipment Accounts Payable Com Notes Payable Transposition St. 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 beance?" Uang the corrected trial balance you prepared, prove that the accounting equation is Liabilities + Stockholders' Equity Assets + Still puzzled, the intem asks Why do none of the amounts in the accounting equation equal the totals on the tral balance? 3. The accounts with debit balances are not all classified in the same element of the accounting equation. For example, net il 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 debt balance should be part of the total de C. You point out the total of the assets, liabilities and stockholders' equity is equal to the sum of the debt 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 accounts with credit balances are lives e. The accounts that make up the total for stockholders' equity have a mix of debit and credit bsances