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Q1: The following trial balance of Star Company does not balance. Star Company Trial Balance September 30, 2018 Debit Credit Cash $5,912 Accounts Receivable $5,240
Q1: The following trial balance of Star Company does not balance. Star Company Trial Balance September 30, 2018 Debit Credit Cash $5,912 Accounts Receivable $5,240 Supplies 2,967 Equipment 6,100 Accounts Payable $7,044 Owner's Capital 10,000 Service Revenue 5,200 Office Expense 4,320 Total $24,979 $21,804 An examination of the ledger shows these errors: 1. Cash received from a customer on account was recorded (both debit and credit) as $1,580 instead of $1,850. 2. The purchase on account of a computer costing $1,900 was recorded as a debit to Office Expense and a credit to Accounts Payable. 3. Services were performed on account for a client, $2,250, for which Accounts Receivable was debited $2,250 and Service Revenue was credited $225. 4. A payment of $95 for telephone charge was entered as a debit to Office Expenses and debit to Cash. 5. The Service Revenue account was totaled at $5,200 instead of $5,280. Required: From this information, prepare a corrected trial balance. (Marks 10)
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