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The following trial balance of Crane Co. does not balance. CRANE CO. TRIAL BALANCE JUNE 30, 2020 Debit Credit Cash $2,971 Accounts Receivable $3,120 Supplies
The following trial balance of Crane Co. does not balance.
CRANE CO. TRIAL BALANCE JUNE 30, 2020 | ||||||
---|---|---|---|---|---|---|
Debit | Credit | |||||
Cash | $2,971 | |||||
Accounts Receivable | $3,120 | |||||
Supplies | 901 | |||||
Equipment | 3,901 | |||||
Accounts Payable | 2,767 | |||||
Unearned Service Revenue | 1,301 | |||||
Common Stock | 6,101 | |||||
Retained Earnings | 3,101 | |||||
Service Revenue | 2,481 | |||||
Salaries and Wages Expense | 3,501 | |||||
Office Expense | 1,041 | |||||
Totals | $13,765 | $17,421 |
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.
1. | 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. | |
2. | The purchase of a computer printer on account for $601 was recorded as a debit to Supplies for $601 and a credit to Accounts Payable for $601. | |
3. | Services were performed on account for a client for $890. Accounts Receivable was debited for $890 and Service Revenue was credited for $89. | |
4. | A payment of $60 for telephone charges was recorded as a debit to Office Expense for $60 and a debit to Cash for $60. | |
5. | When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to $426 was performed prior to June 30 (related to Unearned Service Revenue). | |
6. | A debit posting to Salaries and Wages Expense of $771 was omitted. | |
7. | A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260. | |
8. | A dividend of $676 was debited to Salaries and Wages Expense for $676 and credited to Cash for $676. |
Prepare a correct trial balance.
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