Your friend, Donald Duckworth, recently began work as an accounting associate for Mickey M. Strouse Consulting Company. Donald prepared the following Trial Balance to prepare for year end closing December 31st.

 REQUIREMENT:

Write a brief memo to Donald explaining the errors in the Trial Balance that are needed before year-end financial statements can be prepared. Please include the correct presentation for the Trial Balance in your memo. Your memo should contain the various segments: Heading, Opening, Context/Task/Discussion, Summary/Closing.

 

Cash Accounts Receivable Allowance for Doubtful Accounts Supplies on Hand Prepaid Insurance Equipment Accum. Depreciation-Equipment Accounts Payable Long-term Notes Payable J. Smith, Capital Consulting Revenues Wage Expense Interest Expense Rent Expense Repairs Expense Utilities Expense Totals Debit 22,500 30,000 2,000 1,850 6,500 144,000 48,500 39,400 900 10,800 100 6,750 313,300 Credit 3,000 50,000 57,300 102,000 212,300