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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:

  1. The cash balance is overstated by $5,000.
  2. Rent expense of $340 was erroneously posted as a credit rather than a debit.
  3. A $6,800 credit to Service revenue was not posted.
  4. A $400 debit to Accounts receivable was posted as $40.
  5. The balance of Utilities expense is understated by $70.
  6. A $900 purchase of supplies on account was neither journalized nor posted.
  7. 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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