Question
The trial balance for Finders Company does not balance and the information as follows has been presented: Finders Company Trial Balance February 29, 2020 Account
The trial balance for Finders Company does not balance and the information as follows has been presented:
Finders Company | ||
Trial Balance | ||
February 29, 2020 | ||
Account | Debit | Credit |
Cash | 6,300 |
|
Accounts receivable | 6,000 |
|
Supplies | 400 |
|
Equipment | 22,300 |
|
Computers | 49,000 |
|
Accounts payable |
| 2,800 |
Notes payable |
| 18,500 |
Wright, Capital |
| 50,000 |
Wright, Drawing | 4,000 |
|
Service revenue |
| 4,100 |
Salary Expense | 1,400 |
|
Rent expense | 800 |
|
Advertising expense | 900 |
|
Utilities expense | 800 |
|
Total | 91,900 | 75,400 |
The following errors were detected:
- The cash balance is overstated by $5,000.
- Rent expense of $340 was erroneously posted as a credit rather than a debit.
- A $6,800 credit to Service revenue was not posted.
- A $400 debit to Accounts receivable was posted as $40.
- The balance of Utilities expense is understated by $70.
- A $900 purchase of supplies on account was neither journalized nor posted.
- Equipment should be $16,490.
Requirement
1. Prepare the corrected trial balance on February 29, 2020. Journal entries are not required.
2. Prepare the company's financial statements for the month of February 2020.
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