Question

This al balance of Pharoah Company does not balance PHAROAH COMPANY Trial Balance June 10. 2012 Debit Credit Cash $ 4.790 Accounts Receivable $ 4.890 2,150 4.700 Supplies Equipment Accounts Payable Uncamed 5,206 2,550 Revenue Commor 10,700 800 Dividends Service Reverive 5,190 Salaries and Wages Expense 3,540 990 Expense $19,570 $25,876 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 on account was debited for $760, and Accounts Receivable was credited for the same amount. The actual collection was for $670. 2. The purchase of a printer on account for S340 was recorded as a dcbit to Supplies for $340 and a credit to Accounts Payable for S340. 3. Services were performed on account for a client for $700. Accounts Receivable was debited for $70 and Service Revenue was credited for $700. 1. A debit posting to Salaries and Wages Expense of $730 was omitted. 5. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260 6. Payment of a $700 cash dividend to Pharoah Company's stockholders was debited to Salaries and Wages Expense for $700 and credited to Cash for $700. 7. The amounts for two accounts with normal balances were listed in the wrong column. Prepare the correct trial balance. (Hint: All accounts should have normal balances. PHAROAH COMPANY TriBalance Debit Credit

Answer 1

Answer

Trial Balance
	Debit	Credit
Cash	$   4,700
Accounts receivable	$   5,610
Supplies	$   1,810
Equipment	$   5,040
Accounts Payable		$   4,740
Unearned service revenue		$   2,550
Common Stock		$ 10,700
Dividends	$   1,500
Service revenue		$   5,180
Salaries and wages expenses	$   3,570
Utility expenses	$       940
TOTAL.	$ 23,170	$ 23,170

Calculations:

Trial Balance (in $)
	Debit	Credit
Cash	=4,790-760+670
Accounts receivable	=4,890+760-670+630
Supplies	=2,150-340
Equipment	=4,700+340
Accounts Payable		=5,206-260-206
Unearned service revenue		2,550
Common Stock		10,700
Dividends	=800+700
Service revenue		5,180
Salaries and wages expenses	=3,540+730-700
Utility expenses	940

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