Question

Wilm Schmidt, balance. the owner of Wilm's Window Washing Services, had difficulity getming the debits to equal credits on the January 31. 2017. trial Trial Balance January 31, 2017 Debit Cash Accounts receivable Prepaid insurance S 12,900 10,540 3,700 37,000 Accounts payable Wlm Schmidt, capital Wilm Schmidt, withdrawals Service revenues Salaries expense Insurance expense $ 9.200 58,000 10.260 67,000 33,300 6,500 14,300 6,500 Ublities expense Total $ 135,000 $134,200 The following errors were discovered a. Schmidt did not post a $3,200 purchase of equipment on credit b. In posting a $2,050 collection from a credit customer, Schmidt debited Accounts Receivable and credited Cash. c. In posting a cash receipt, Schmidt correctly debited Cash for $2.670 but incorrectly credited Accounts Receivable for $7,270 d. In posting a $5.400 payment on account, Schmidt debited Accounts Payable but forgot to post the credit to Cash e. In posting the entry for services of $3,100 performed for a customer on credit Schmidt debited Accounts Receivable but credited Maintenance Expense. Required: Prepare a corrected trial balance Trial Balance January 31, 2017 Account Titles Debit Credit

Answer 1

					Debit	Credit
	Cash				11,600
	Accounts receivable				11,040
	Prepaid insurance				3,700
	Equipment				40,200
	Accounts payable					12,400
	Wilm Schmidt,capital					58,000
	Wilm Schmidt,withdrawals				10,260
	Service revenues					70,100
	Salaries expenses				33,300
	Insurance expense				6,500
	Maintenance expense				17,400
	Utilities expense				6,500
	total				140,500	140500
	working notes
	Adjustments
	Account name				Debit	Credit
a.	Equipment				3,200
	accounts payable					3,200
b.	Cash	(2050*2)			4100
	Account receivable					4,100
c.	Accounts receivable		(7270-2670)		4600
	service revenue
d.	cash					5,400
e.	maintenance expense				3,100
	service revenue					3,100