Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Wilm Schmidt, the owner of Wilm's Window Washing Services, had difficulty getting the debits to equal credits on the January 31, 2020, trial balance. Wilm's

image text in transcribedimage text in transcribed

Wilm Schmidt, the owner of Wilm's Window Washing Services, had difficulty getting the debits to equal credits on the January 31, 2020, trial balance. Wilm's Window Washing Services Trial Balance January 31, 2020 Debit Credit Cash $ 12,400 Accounts receivable 10,040 Prepaid insurance 3,200 Equipment 32,000 Accounts payable $ 10,200 Wilm Schmidt, capital 53,000 Wilm Schmidt, withdrawals 9,760 Service revenues 61,600 Salaries expense 32,800 Insurance expense 6,000 Maintenance expense 13,800 Utilities expense 6,000 Total $126,000 $124,800 The following errors were discovered: a. Schmidt did not post a $4,800 purchase of equipment on credit. b. In posting a $1,800 collection from a credit customer, Schmidt debited Accounts Receivable and credited Cash. c. In posting a cash receipt, Schmidt correctly debited Cash for $2,650 but incorrectly credited Accounts Receivable for $5,250. d. In posting a $3,800 payment on account, Schmidt debited Accounts Payable but forgot to post the credit to Cash. e. In posting the entry for services of $2,600 performed for a customer on credit, Schmidt debited Accounts Receivable but credited Maintenance Expense. Required: Prepare a corrected trial balance. WILM'S WINDOW WASHING SERVICES Trial Balance January 31, 2020 Account Titles Debit Credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Consolidated Financial Reporting

Authors: Paul Taylor

1st Edition

1853962503, 9781853962509

More Books

Students also viewed these Accounting questions

Question

What challenges does GE have to face in the HRM field today?

Answered: 1 week ago