The trial balance for Treasure Hunt Exploration Company does not balance. The following errors were detected: a.

Question:

The trial balance for Treasure Hunt Exploration Company does not balance.

TREASURE HUNT EXPLORATION COMPANY Trial Balance February 28, 2015 Balance Account Title Debit Credit Cash $ 6,300 Accounts Receivable 6.000 Office Suppies 400 Computers 22,300 Exploration Equipment 49.000 $ 2,800 Accounts Payable Notes Payable 18,500 Common Stock 50,000 Dividends 4,000 Service Revenue 4,100 Salaries Expense 1.400 Rent Expense 800 Advertising

The following errors were detected:

a. The Cash balance is overstated by $ 5,000.

b. Rent Expense of $ 340 was erroneously posted as a credit rather than a debit.

c. A $ 6,800 credit to Service Revenue was not posted.

d. A $ 400 debit to Accounts Receivable was posted as $ 40.

e. The balance of Utilities Expense is understated by $ 70.

f. A $ 900 purchase of office supplies on account was neither journalized nor posted.

g. Computers should be $ 16,490.

Prepare the corrected trial balance at February 28, 2015. Journal entries are not required.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Horngrens Financial and Managerial Accounting

ISBN: 978-0133255584

4th Edition

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

Question Posted: