Wilm Schmidt, the owner of Wilms Window Washing Services, had difficulty getting the debits to equal credits on the January 31, 2017, trial balance.

Wilms Window Washing Services
Trial Balance
January 31, 2017
	Debit				Credit
Cash	$	13,300
Accounts receivable		10,940
Prepaid insurance		4,100
Equipment		41,000
Accounts payable					$	11,600
Wilm Schmidt, capital						62,000
Wilm Schmidt, withdrawals		10,660
Service revenues						67,400
Salaries expense		33,700
Insurance expense		6,900
Maintenance expense		14,700
Utilities expense		6,900
Total	$	142,200			$	141,000

The following errors were discovered:

a. Schmidt did not post a $3,600 purchase of equipment on credit. b. In posting a $2,250 collection from a credit customer, Schmidt debited Accounts Receivable and credited Cash. c. In posting a cash receipt, Schmidt correctly debited Cash for $2,560 but incorrectly credited Accounts Receivable for $6,260 d. In posting a $4,900 payment on account, Schmidt debited Accounts Payable but forgot to post the credit to Cash. e. In posting the entry for services of $3,500 performed for a customer on credit, Schmidt debited Accounts Receivable but credited Maintenance Expense.

Required: Prepare a corrected trial balance

Required: Using the trial balance provided above, prepare an income statement and statement of changes in equity for the first month ended May 31, 2017, and a balance sheet at May 31, 2017.

Analysis Component: Upon review of the trial balance, the balance at May 31, 2017 for utilities expense is $1,320. Create a journal entry that might have created this balance. Create a second entry when the May utility bill is to be paid in the next month. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

The balance in the utilities expense account could have arisen on account of one of the following entries.

or