The trial balance of Beautiful Tots Child Care does not balance. The following errors are detected: a.
Question:
The following errors are detected:
a. Cash is understated by $1,500.
b. A $4,100 debit to Accounts Receivable was posted as a credit.
c. A $1,400 purchase of office supplies on account was neither journalized nor posted.
d. Equipment was incorrectly transferred from the ledger as $91,500. It should have been transferred as $83,000.
e. Salaries Expense is overstated by $700.
f. A $300 cash payment for advertising expense was neither journalized nor posted.
g. A $200 cash dividend was incorrectly journalized as $2,000.
h. Service Revenue was understated by $4,100.
i. A 12-month insurance policy was posted as a $1,900 credit to Prepaid Insurance.
Cash was posted correctly.
Prepare the corrected trial balance as of August 31, 2018. Journal entries are not required.
BEAUTIFUL TOTS CHILD CARE Trial Balance August 31, 2018 Balance Account Title Debit Credit $ 7,900 Cash Accounts Receivable 6,700 Office Supplies 1,000 Prepaid Insurance 300 Equipment 91,500 $ 3,400 Accounts Payable Notes Payable 45,000 Common Stock 57,000 Dividends 5,000 Service Revenue 12,350 Salaries Expense 4,400 Rent Expense 750 $ 117,550 $ 117,750 Total
Step by Step Answer:
BEAUTIFUL TOTS CHILD CARE Trial Balance August 31 2018 Account Title Balance Debit C...View the full answer
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
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A trial balance is a list of all the general ledger accounts contained in the ledger of a business. This list will contain the name of each nominal ledger account and the value of that nominal ledger balance. Each nominal ledger account will hold either a debit balance or a credit balance
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