Task 3.2:

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Topic 3 / Task 3: The Trial Balance

The following trial balance of Johns Hot Dogs for September 30 2016 does not balance.

Cash $21,860

Accounts Receivable 35,000

Supplies 3,640

Building 51,000

Note Payable $15,500

Owners' Equity 30,000

Retained Earnings 10,000

Revenue 39,500

Expenses 25,000 _____

Total $136,500 $95,000

The following errors were discovered:

1. A purchase of supplies for cash was posted as $40 when it should have been $400.

2. The first two numbers of the amount for notes payable were transposed while being copied from the account balance to the trial balance. The correct amount of Notes Payable should be $51,500.

3. A collection of cash was debited to the cash account in the amount of $5,500 but was not credited to the revenue account.

4. A purchase of supplies for $725 on account was not recorded.

Instructions: Prepare a corrected trial balance. Show your calculations below the trial balance.

Answer:

Johns Hot Dogs

Trial Balance

September 30, 2016

Account Debit Credit