Mastery Problem: Analyzing Transactions KL Company Inc. 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 Bal. 3/25 3/28 3/30 Cash 8,000 3/3 7,425 3/27 5,500 3/29 7,825 3/31 2,300 1,275 3,375 1,925 Bal. 3/18 Accounts Receivable 1,950 9,875 3/30 7,825 Supplies 225 1,450 3/2 Office Equipment 18,500 Accounts Payable 1,275 Bal. 3/27 1,250 Accounts Payable 1,275 Bal. 3/7 1,250 1,450 Notes Payable | 3/2 18,500 Common Stock Bal. 7,500 5,500 3/28 Retained Earnings Bal. 1,425 Dividends 1,925 3/31 Fees Earned 3/18 9,875 7,425 3/25 Rent Expense 3/28 5,500 Retained Earnings Bal. 1,425 Dividends 1,925 3/31 Fees Earned 3/18 3/25 9,875 7,425 3/3 Rent Expense 2,300 3/29 Wages Expense 3,375 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, 2043 Account Title Debit Balances Credit Balances Cash 24,475 Accounts Receivable 4,000 Supplies Office Equipment Accounts Payable Notes Payable 1,675 18,500 1,425 18,500 13,000 Common Stock Retained Earnings 1,425 Dividends 1,925 Fees Earned 9,875 Rent Expense 3,200 Wages Expense 3,375 50,675 50,700 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. 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 19,875 Accounts Receivable 4,000 Supplies 1,675 Office Equipment 18,500 Accounts Payable Notes Payable 1,425 18,500 13,000 1,425 Common Stock Retained Earnings Dividends 1,925 Fees Earned 17,300 3,200 Rent Expense Wages Expense 3,375 52,550 52,550 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