The trial balance of Circle 360, Inc., at October 31, 2010, does not balance.

Requirements
1. How much out of balance is the trial balance? Determine the out-of-balance amount.
The error lies in the Accounts Receivable account. Add the out-of-balance amount to, or subtract it from, Accounts Receivable to determine the correct balance of
Accounts Receivable.
2. After correcting Accounts receivable, advise the top management of Circle 360, Inc., on the company€™s
a. Total assets.
b. Total liabilities.
c. Net income or net loss forOctober.

Transcribed Image Text:

Cash. 4,400 Common stock. $20,700 Accounts receivable..6 6,800 Retained earnings...7,800 ervice revenue . Accounts payable...6,3 Note payabl. .. 3,200 5,400 Advertising expense.1,000 Salary expense