Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The trial balance for Spin Master Toys shown below does not balance. Each of the listed accounts has a normal balance per the general ledger.
The trial balance for Spin Master Toys shown below does not balance. Each of the listed accounts has a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors: a) A debit posting to Furniture of $310 was omitted. b) A payment of a balance due for $390 was credited to Cash for $390 and debited to Accounts Payable for $930. c) A Cash payment of $500 for insurance was debited to Insurance Expense for $530 and credited to Cash for $530. d) The totals of the debit sides of Prepaid Rent, Machinery, and Cash were each understated $370. Complete the corrected Trial Balance below: Accounts from incorrect Trial Balance. Account Cash... Balance Spin Master Toys 8,600 Accounts receivable Prepaid advertising.. Prepaid rent Furniture... 1,500 Trial Balance December 31, 2014 6,000 28,130 Cash 12,790 Accounts receivable... Machinery.. 7,130 Prepaid advertising.. Accounts payable 960 Prepaid rent... Interest payable. 12,000 Furniture... Unearned consulting revenue... 2,400 Machinery.. Unearned rent... 4,500 Accounts payable. Share capital. 33,100 Interest payable. Dividends.. 4,500 Unearned consulting revenue Consulting revenue earned. 10,400 Unearned rent... Commissions earned... 10,500 Share capital. Interest earned.. 24,000 Dividends... Insurance expense. 4,530 Consulting revenue earned....... Office supplies expense.. 11,800 Advertising expense.. 6,000 Utilities expense... 6,000 Commissions earned... Interest earned Insurance expense Advertising expense... Utilities expense Totals Office supplies expense.... Debit Credit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started