Problem 13-32A (Algo) Effect of errors on the trial balance LO 13-3 The following trial balance was prepared from the ledger accounts of Ricardo Company: RICARDO COMPANY April 30, Year 1 Account Titles Trial Balance Credit Debit $ 69,460 31,000 1.900 3,700 Cash Accounts receivable Supplies Prepaid insurance Land Accounts payable Connon stock Retained earnings Dividends Service revenue Rent pense Salaries expense Operating expense Totals $ 11,eee 9,700 100,eee 27,865 8,100 61, eee 9.700 31,700 32,600 $ 189,100 $ 209,565 When the trial balance failed to balance, the accountant reviewed the records and discovered the following errors 1. The company received $565 as payment for services rendered. The credit to Service Revenue was recorded correctly, but the debit to Cash was recorded as $670 2 A $950 receipt of cash that was recelved from a customer on accounts receivable was not recorded. 3. A $430 purchase of supplies on account was properly recorded as a debit to the Supplies account However, the credit to Accounts Payable was not recorded. 4. Land valued at $1,000 was contributed to the business in exchange for common stock. The entry to record the transaction was recorded as a $11,000 credit to both the Land account and the Common Stock account 5. A $550 rent payment was properly recorded as a credit to Cash. However, the Salaries Expense account was incorrectly debited for $550 Required Prepare a corrected trial balance for Ricardo Company. RICARDO COMPANY Trial Balance As of April 30, Year 1 Account Titles Debit Credit Total