Trial Balance: Unequal Totals

The intern has prepared the following trial balance for the month of March.

KL Company Inc.

Unadjusted Trial Balance

March 31, 20Y3

Account Title Debit Balances Credit Balances

Cash 26,250

Accounts Receivable 3,850

Supplies 1,675

Office Equipment 19,000

Accounts Payable 1,400

Notes Payable 19,000

Common Stock 14,500

Retained Earnings 1,425

Dividends 1,875

Fees Earned 10,025

Rent Expense 3,200

Wages Expense 3,575

52,950 52,825

Trial Balance: Correct

The Trial Balance: Unequal Totals was prepared by the intern. The intern is puzzled by the unequal totals. Prepare a corrected trial balance. If an amount box does not require an entry, leave it blank.

Account Title Debit Balances Credit Balances

Cash _____ _____

Accounts Receivable _____ _____

Supplies _____ _____

Office Equipment _____ _____

Accounts Payable _____ _____

Notes Payable _____ _____

Common Stock _____ ______

Retained Earnings _____ ______

Dividends _____ ______

Fees Earned _____ ______

Rent Expense _____ ______

Wages Expense ______ ______

------------------------------------------------------------------

Total

Errors on Trial Balance

Compare the trial balance prepared by the intern (Trial Balance: Unequal Totals) to the trial balance that you prepared (Trial Balance: Correct). In the following table, select the accounts for each type of error. Not all accounts contain errors.

Error type: .Transposition Incorrectly reported as a debit Incorrectly reported as a credit Balance computed incorrectly

Cash _____ _____ _____ _____

Acct. Rec. _____ _____ _____ _____

Supplies _____ _____ _____ _____

Office Equ. _____ _____ _____ _____

Acct. Payable _____ _____ _____ _____

Notes Payable _____ _____ _____ _____

C.S. _____ _____ _____ _____

Retained E. _____ _____ _____ _____

Dividends _____ _____ _____ _____

Fees Earned _____ _____ _____ _____

Rent Expense _____ _____ _____ _____

Wages Exp. _____ _____ _____ _____

Accounting Equation

The intern is puzzled and asks "Are you sure the accounting equation is still in balance?" Using the corrected trial balance you prepared, prove that the accounting equation is in balance.

Assets=Liabilities+Stockholders' Equity

$_____=$_______+ $_______