PROBLEM 3-31A

Problem 3-31A Effect of errors on the trial balance

The following trial balance was prepared from the ledger accounts of Ricardo Company:

RICARDO COMPANY

Trial Balance

April 30, 2016

Account Title Debit Credit

Cash $ 68,900

Accounts Receivable 30,000

Supplies 1,800

Prepaid Insurance 3,600

Land $ 12,000

Accounts Payable 9,600

Common Stock 100,000

Retained Earnings 27,510

Dividends 8,000

Service Revenue 60,000

Rent Expense 9,600

Salaries Expense 31,500

Operating Expense 32,400

Totals $185,800 $209,110

CHECK FIGURE

Corrected Cash Balance: $69,710

When the trial balance failed to balance, the accountant reviewed the records and discovered the

following errors:

1. The company received $560 as payment for services rendered. The credit to Service Revenue

was recorded correctly, but the debit to Cash was recorded as $650.

2. A $900 receipt of cash that was received from a customer on accounts receivable was not recorded.

3. A $600 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 $12,000 was contributed to the business in exchange for common stock. The

entry to record the transaction was recorded as a $12,000 credit to both the Land account

and the Common Stock account.

5. A $500 rent payment was properly recorded as a credit to Cash. However, the Salaries

Expense account was incorrectly debited for $500.

Required

Based on this information, prepare a corrected trial balance for Ricardo Company.