Question

WINTER CO. Trial Balance June 30, 2021 Debit Credit Cash $2,921 Accounts receivable 1.913 Supplies 498 Equipment $7,875 Accounts payable 2,787 Unearned revenue 1,850 F. Winter, capital 11,134 F. Winter, drawings 785 Service revenue 3,490 Office expense 1,013 Salaries expense 2.994 $11,974 $25,286 Your review of the ledger reveals that each account has a normal balance. You also discover the following errors: 1. Cash received from a customer on account was debited to Cash for $740 and Accounts Receivable was credited for the same amount. The actual collection was $470. 2. The purchase of supplies on account for $350 was recorded as a debit to Equipment for $350 and a credit to Accounts Payable for $350. 3. Services of $800 were performed on account for a client. Accounts Receivable was debited for $80 and Service Revenue was credited for $800 4. A debit posting to Office Expense of $490 was not done. 5. A payment on account for $603 was credited to Cash for $603 and debited to Accounts Payable for $306. 6. The withdrawal of $395 cash for Winter's personal use was debited to Salaries Expense for $395 and credited to Cash for $395. 7. A transposition error (reversal of digits) was made when copying the balance in Service Revenue to the trial balance. The correct balance recorded in the account was $4,390. 8. The general ledger contained a Prepaid Insurance account with a debit balance of $655. Prepare a correct trial balance.

Answer 1

Particulars Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts payables Unearned Service Revenue F.Winter , Capital F. Winter, Drawings Service Revenue Office Expenses Salaries Expenses Given Adjustments Adjustme | Correct trail balance Debit Credit Debit Credit Debit Credit | $ 2.921 $ 270 $ 2,651 $ 1,913 $ 990 $ 2,903 $ 498 $ 350 $ 848 $ 655 655 $ 7,875 $ 350 $ 7,525 $ 2,787 $ 297 $ 2,490 $ 1,850 1,850 $ 11,134 $ 11,134 $ 785 $ 395 $ $ 3,490 $ 900 $ 4,390 $ 1,013 $ 885 $ 1,898 | $ 2,994 $ 2,994 $17,999 $19,261 $3,177 S 1,915 19,864S 19,864 390 Cash account debit is over recorded of 270 and accounts receivables credit is over recorded of 270 Egipment account over recorded of 350 and supplies is under recorded of 350 Account receivable is under recorded of 720 Office Expenses recording was not done for 490(omitted) Accounts payable under recorded by 297(603-306) Salaries Expenses are under recorded by 350,because it is debited in F.winter Drawings Transpostition error was occurred in Service Revenue, that is under recorded by 900(4390-3490) Omission of Prepaid Insurance debit balance of 655