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Tech Support Services has the following unadjusted trial balance as of December 31, 2017 Cash 25,550 Accounts receivable 44,050 Supplies 6,660 Prepaid insurance 3,600 Equipment
Tech Support Services has the following unadjusted trial balance as of December 31, 2017 | ||||||||||
Cash | 25,550 | |||||||||
Accounts receivable | 44,050 | |||||||||
Supplies | 6,660 | |||||||||
Prepaid insurance | 3,600 | |||||||||
Equipment | 162,000 | |||||||||
Notes payable | 75,000 | |||||||||
Accounts payable | 13,200 | |||||||||
Johnny Tremain, Capital | 101,850 | |||||||||
Johnny Tremain, Drawings | 33,000 | |||||||||
Fee revenue | 534,000 | |||||||||
Wages expense | 306,000 | |||||||||
Rent expense | 62,550 | |||||||||
Advertising expense | 23,850 | |||||||||
Utilities expense | 17,000 | |||||||||
684,260 | 724,050 | |||||||||
The following errors are reflected in the trial balance: | ||||||||||
a) | The cash entered on the trial balance was overstated by $8,000. | |||||||||
b) | A cash receipt of $4,100 was posted as a debit to Cash of $1,400. | |||||||||
c) | A debit of $12,350 to Accounts Receivable was not posted. | |||||||||
d) | A return of $235 of defective supplies was erroneously posted as a $325 credit to Supplies. | |||||||||
e) | An insurance policy acquired at a cost of $3,000 was posted as a credit co Prepaid insurance. | |||||||||
f) | The balance of Notes Payable was overstated by $21,000. | |||||||||
g) | A credit of $3,450 in Accounts payable was overlooked when the balance of the account was determined. | |||||||||
h) | A debit of $6,000 for a withdrawal by the owner was posted as a debit to the Capital account. | |||||||||
i) | The balance of $28,350 in Advertising expense is entered as $23,850 in the trial balance. | |||||||||
j) | Miscellaneous expense with a balance of $4,600 was omitted from the trial balance. | |||||||||
Instructions: | ||||||||||
Prepare a corrected unadjusted trial balance as of December 31, 2017. |
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