As the CFO (Chief Financial Officer) of Rollins Engineering Company, you are looking for someone to fill the position of office manager. Part of the job description is to maintain the company’s accounting records. This means that the office manager must be able to journalize transactions, post them to the ledger accounts, and prepare monthly trial balances. You have just interviewed the first applicant, Jay McMahon, who claims that he has studied accounting. As an initial check on his understanding of the basic mechanics of accounting, you give Jay a list of accounts randomly ordered and with assumed balances and ask him to prepare a trial bal- ance. Jay prepares the following.

eS SIA I I I OE I EE IE I ET Trial Balance Debits Credits Accounts; Ravableaent. «fei  82,100 WtilitieSrEXPeMmS@laiceh ancov a: cyclo ovsag sh see ict fotolia nena, cess 12,000 ACCOURESEREGEIV AD Oma, setisyiten sue in turer ae nt nen nnn Renee Serer Et gana, oot ys 44,000 Suppllesierumereree ces crt tae mv thane ete epee PAE Scie n-ne mantle gn tas 11,000 RentExpensemauayor sie: bok Cece iia me eae a or. 30,000 CapitalyStocksepatee aceasta Ggherecweheayarset 495) wach peeseeme Ayorsmepar eta ve cst 77,000 SUPPIESTEXDEMSC me ast ava co crtenpenars) ce nan nts te mer sere rome ees ea 33,000 OfficerEQuipmenterarica at anette cera chars vgane seem ten ened i tack 15,000 RETAIMNECMEATMING Stn ces sects codec se oe anemic. oben an meena atte cele 24,000 OihemEXPeNSeS ic sis cen. wee wm iene cs Vora eaten ie menew erat ps ia cee 6,400 Salanlestindy abl Odsema le grata st eregdeste temo ie Merete Monon Ret eiennteatclye Taye = 34,000 TO talSaeis ae te ious edna ue Sa ee Ree tenets ey enna eatemei ced $492,500 $324,500 

Based solely on your assessment of Jay McMahon’s understanding of accounting, would you hire him as office manager? Explain. Prepare a corrected trial balance that you can use as a basis for your discussion with Jay and future applicants. Explain how the basic accounting equation and the system of double-entry accounting provide a check on the accounting records.