The trial balance of Building Blocks Child Care, Inc., does not balance.

The following errors are detected:
a. Cash is understated by $4,000.
b. A $2,000 debit to Accounts receivable was posted as a credit.
c. A $1,200 purchase of supplies on account was neither journalized nor posted.
d. Equipment€™s cost is $87,700, not $88,000.
e. Salary expense is overstated by $100.
Requirement
1. Prepare the corrected trial balance at May 31, 2012. Journal entries are notrequired.

Transcribed Image Text:

BUILDING BLOCKS CHILD CARE, INC. Trial Balance May 31, 2012 Debit $ 6,300 3,000 Credit Account Cash Accounts receivable Supplies Equipment Accounts payable 700 88,000 $ 57,000 Common stock 50,400 Dividends 2,600 Service revenue Salary expense 4,700 3,200 Rent expense 700 $ 104,500 $ 112,100 Total