Question

Below is the unadjusted trial balance for Dawson Designs. Dawson Designs Co. Unadjusted Trial Balance For the Month of January Debits Credits Cash 23,000 Accounts Receivable 49,700 Prepaid Insurance 11,300 Equipment 150,500 Accounts Payable 6,050 Salaries Payable 4,250 Common Stock 110,000 Dividends 18,500 Service Revenue 236,600 Salary Expense 98,930 Miscellaneous Expense 4,970 424,020 424,020 Required: 1. Identify the errors in the above trial balance. All accounts have normal balances. What should the correct balance be for the trial balance in both the debit and credit columns? Debits $ Credits $ 2. Prepare a corrected trial balance. If an amount box does not require an entry, leave it blank or enter "0". Dawson Designs Co. Unadjusted Trial Balance January 31 Debits Credits Cash Accounts receivable Prepaid insurance Equipment Accounts payable Salaries payable Common Stock Dividends Service revenue Salary expense Miscellaneous expense

Answer 1

Designs co.
Trail Balance
	Debit	Credit
Cash	$      23,000
Accounts Receivable	$      49,700
Prepaid insurance	$      11,300
Equipment	$   1,50,500
Account payable		$             6,050
Salaries payable		$             4,250
Common Stock		$       1,10,000
service revenue		$       2,36,600
Dividends	$      18,500
Salaries expenses	$      98,930
Miscellaneous expenses	$         4,970
	$   3,56,900	$       3,56,900
All Assets, expenses or losses appear on the debit side of trail balance and Capital, income appears credit side of trail balance