Question

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 $750, and Accounts Receivable was credited for the same amount. The actual collection was for $570. 2. The purchase of a printer on account for $340 was recorded as a debit to Supplies for $340 and a credit to Accounts Payable for $340. 3. Services were performed on account for a client for $900. Accounts Receivable was debited for $90 and Service Revenue was credited for $900. 4. A debit posting to Salaries and Wages Expense of $710 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 Blossom 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) BLOSSOM COMPANY Trial Balance June 30, 2022 Debit Accounts Receivable Supplies Accounts Payable Unearned Service Revenge

Answer 1

Following rectifications need to be made:

1. A Decrease in cash $180 and increase in accounts receivable $180

2. A Decrease in supplies $340 and increase in Equipment $340

3. An increase in accounts receivable by $810

4. An increase in salaries and wages expense by $710

5. accounts payable should have been debited by $206, instead it was credited by $260, therefore a decrease of $206 and $260 from accounts payable

6. A Decrease in salaries and wages expense $700 and increase in Dividend by $700

7. cash should be reported on the debit side of trial balance and Unearned Service Revenue should be reported on the credit side.

The required trial balance after all adjustments is as folows

Particulars	Debit	Credit
Cash	5110
Accounts receivable	6380
Supplies	2160
Equipment	5540
Accounts payable		5420
Unearned Service Revenue		2900
Common Stock		11200
Dividend	1500
Service Revenue		5680
Salaries and Wages	3590
Utilities Expenses	920
Total	25200	25200