Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

table [ [ table [ [ WATERWAY CO . ] , [ TRIAL BALANCE ] , [ JUNE 3 0 , 2 0

\table[[\table[[WATERWAY CO.],[TRIAL BALANCE],[JUNE 30,2025]]],[,Debit,Credit],[Cash,,$3,259],[Accounts Receivable,$2,852,],[Supplies,1,189,],[Equipment,4,189,],[Accounts Payable,,3,055],[Unearned Service Revenue,1,589,],[Common Stock,,6,389],[Retained Earnings,,3,389],[Service Revenue,,2,769],[Salaries and Wages Expense,3,789,],[Office Expense,1,329,],[,$14,937,$18,861]]
Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.
Cash received from a customer on account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750.
The purchase of a computer printer on account for $889 was recorded as a debit to Supplies for $889 and a credit to Accounts Payable for $889.
Services were performed on account for a client for $890. Accounts Receivable was debited for $890 and Service Revenue was credited for $89.
A payment of $70 for telephone charges was recorded as a debit to Office Expense for $70 and a debit to Cash for $70.
When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to $714 was performed prior to June 30(related to Unearned Service Revenue).
A debit posting to Salaries and Wages Expense of $1,059 was omitted.
A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260.
A dividend of $964 was debited to Salaries and Wages Expense for $964 and credited to Cash for $964.
Prepare a correct trial balance.WATERWAY CO.
TRIAL BALANCE
JUNE 30,2025
Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the
following errors.
Cash received from a customer on account was debited for $570, and Accounts Receivable was credited for the same amount.
The actual collection was for $750.
The purchase of a computer printer on account for $889 was recorded as a debit to Supplies for $889 and a credit to
Accounts Payable for $889.
Services were performed on account for a client for $890. Accounts Receivable was debited for $890 and Service Revenue
was credited for $89.
A payment of $70 for telephone charges was recorded as a debit to Office Expense for $70 and a debit to Cash for $70.
When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to $714 was
performed prior to June 30(related to Unearned Service Revenue).
A debit posting to Salaries and Wages Expense of $1,059 was omitted.
A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260.
A dividend of $964 was debited to Salaries and Wages Expense for $964 and credited to Cash for $964.
Prepare a correct trial balance.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Internet Supply Chain Impact On Accounting And Logistics

Authors: D. Chorafas

5th Edition

0333949633, 9780333949634

More Books

Students also viewed these Accounting questions

Question

What are the responsibilities of the position?

Answered: 1 week ago