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The following trial balance of Headland Co. does not balance. HEADLAND CO. TRIAL BALANCE JUNE 30, 2017 Debit Credit Cash $3,003 Accounts Receivable $3,364 Supplies
The following trial balance of Headland Co. does not balance.
HEADLAND CO. TRIAL BALANCE JUNE 30, 2017 | ||||||
Debit | Credit | |||||
Cash | $3,003 | |||||
Accounts Receivable | $3,364 | |||||
Supplies | 933 | |||||
Equipment | 3,933 | |||||
Accounts Payable | 2,799 | |||||
Unearned Service Revenue | 1,333 | |||||
Common Stock | 6,133 | |||||
Retained Earnings | 3,133 | |||||
Service Revenue | 2,513 | |||||
Salaries and Wages Expense | 3,533 | |||||
Office Expense | 1,073 | |||||
Totals | $14,169 | $17,581 |
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 $633 was recorded as a debit to Supplies for $633 and a credit to Accounts Payable for $633. | |
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 $198 for telephone charges was recorded as a debit to Office Expense for $198 and a debit to Cash for $198. | |
5. | When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to $458 was performed prior to June 30 (related to Unearned Service Revenue). | |
6. | A debit posting to Salaries and Wages Expense of $803 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 $708 was debited to Salaries and Wages Expense for $708 and credited to Cash for $708 Prepare a correct trial balance. |
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