Acc280 Financial Accounting: P2-4A The trial balance of Ron Salem Co. shown

Acc280 Financial Accounting

P2-4A Prepare a correct trial balance.
The trial balance of Ron Salem Co. shown below does not balance. Prepare a correct trial balance.
Trial Balance
June 30, 2006
Debit Credit
Cash 3,840
Accounts Receivable 3,231
Supplies 800
Equipment 3,000
Accounts Payable 2,666
Unearned Revenue 2,200
Common Stock 9,000
Dividends 800
Service Revenue 2,380
Salaries Expense 3,400
Office Expense 910
$14,341 $17,886

Each of the listed accounts has a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.
1. Cash received from a customer in payment of its account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750.
2. The purchase of a printer on account for $340 was recorded as a debit to Supplies for $340 and a credit to Accounts Payable for $340.
3. Services were performed on account for a client for $890. Accounts Receivable was debited for $890, and Service Revenue was credited for $89.
4. A debit posting to Salaries Expense of $367 was omitted.
5. A payment of a balance due for $309 was credited to Cash for $309 and credited to Accounts Payable for $390.
6. The payment of a $500 cash dividend was debited to Salaries Expense for $500 and credited to Cash for $500.

Prepare a correct trial balance. (Hint: It helps to prepare the correct journal entry for the transaction described and compare it to the mistake made).
Powered by