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This trial balance of Washburn Co. does not balance. WASHBURN CO. Trial Balance June 30, 2017 Debit Credit Cash $3,090 Accounts Receivable $3,190 Supplies 800
This trial balance of Washburn Co. does not balance.
WASHBURN CO. Trial Balance June 30, 2017 | ||
Debit | Credit | |
Cash | $3,090 | |
Accounts Receivable | $3,190 | |
Supplies | 800 | |
Equipment | 3,000 | |
Accounts Payable | 3,686 | |
Unearned Service Revenue | 1,200 | |
Common Stock | 9,000 | |
Dividends | 800 | |
Service Revenue | 3,480 | |
Salaries and Wages Expense | 3,600 | |
Utilities Expense | 910 | |
Total | $13,500 | $19,256 |
Each of the listed accounts has 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 $760, and Accounts Receivable was credited for the same amount. The actual collection was for $706. (My thoughts was to Dr. Cash 760 and Cr. Accounts Receivables 760) |
2. | The purchase of a printer on account for $340 was recorded as a debit to Supplies for $340 and a credit to Accounts Payable for $340. (My thoughts was to Dr. Supplies and Equipment 340 and Cr. Accounts Payable 340.) |
3. | Services were performed on account for a client for $900. Accounts Receivable was debited for $90 and Service Revenue was credited for $900. (My thoughts was to Cr. Service Revenue 900 and Dr. Accounts Receivable 90.) |
4. | A debit posting to Salaries and Wages Expense of $700 was omitted. (My thoughts was to Dr. Salaries and Wages Exp.700.) |
5. | A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260. (My thoughts was to Dr. Accounts payable 466.) |
6. | Payment of a $600 cash dividend to Washburn Co.'s stockholders was debited to Salaries and Wages Expense for $600 and credited to Cash for $600. (My thoughts are to Dr. Dividends, Salaries and Wages Exp. 600 and Cr. Cash 600. I understand that I have that correct.) |
I'm having a hard time correcting this Trial Balance. I can see Unearned Service Rev. and Utilities Exp. doesn't change, but these previous numbers are confusing me along with the corrections. Are my thoughts before Step 6 on the right track?
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