Question

The following trial balance of SADA Corporation does not balance.

Scarlatti Corporation Trial Balance April 30, 2019
	Debit	Credit
Cash	$ 5,912
Accounts Receivable	5,240
Supplies	2,967
Equipment	6,100
Accounts Payable		$ 7,044
Share Capital—Ordinary		8,000
Retained Earnings		2,000
Service Revenue		5,200
Office Expense	4,320
	$24,539	$22,244

An examination of the ledger shows these errors.

1. Cash received from a customer on account was recorded (both debit and credit) as $1,580 instead of $1,850.

2. The purchase on account of a computer costing $1,900 was recorded as a debit to Office Expense and a credit to Accounts Payable.

3. Services were performed on account for a client, $2,250, for which Accounts Receivable was debited $2,250 and Service Revenue was credited $225.

4. A payment of $95 for telephone charges was entered as a debit to Office Expense and a debit to Cash.

5. The Service Revenue account was totaled at $5,200 instead of $5,280.

Instructions

From this information prepare a corrected trial balance.

Answer 1

Correct trial balance

	Debit	Credit
Cash	5992
Account receivable	4970
Supplies	2967
Computer	1900
Equipment	6100
Account payable		7044
Share Capital -Ordinary		8000
Retained earnings		2000
Service revenue		7305
Office expense	2420
Total	24349	24349