Question

The following trial balance of Vaughn Co. does not balance.

VAUGHN CO. TRIAL BALANCE JUNE 30, 2020
		Debit			Credit
Cash					$3,195
Accounts Receivable		$2,946
Supplies		1,125
Equipment		4,125
Accounts Payable					2,991
Unearned Service Revenue		1,525
Common Stock					6,325
Retained Earnings					3,325
Service Revenue					2,705
Salaries and Wages Expense		3,725
Office Expense		1,265
Totals		$14,711			$18,541

Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.

1.		Cash received from a customer on 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 computer printer on account for $825 was recorded as a debit to Supplies for $825 and a credit to Accounts Payable for $825.
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 payment of $85 for telephone charges was recorded as a debit to Office Expense for $85 and a debit to Cash for $85.
5.		When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to $650 was performed prior to June 30 (related to Unearned Service Revenue).
6.		A debit posting to Salaries and Wages Expense of $995 was omitted.
7.		A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260.
8.		A dividend of $900 was debited to Salaries and Wages Expense for $900 and credited to Cash for $900.

Prepare a correct trial balance.

Answer 1

VAUGHN CO. TRIAL BALANCE 30-Jun-20 Debit Credit Cash 4180 Accounts Receivable 2766 Supplies 300 4125 1700 875 Equipment Accounts Payable Unearned Service Revenue Common Stock Retained Earnings Service Revenue 6325 3325 4156 Salaries and Wages Expense 3820 Office Expense 1265 Printer 825 Divident Earned 900 Totals 17281 17281

Adjustment Cash Receivable Supplies Printer Accounts Dividend Payable Service Unearne Salary & Revenue d service Wages revenue 2705 1525 3725 Opening 3195 2946 2991 i 2 180 -825 825 650 |-650 995 -466 1800 -900 Closing 4180 2766 825 4156 875 3820 1700 900