Question

ect trial 700 P2-4A The trial balance of Dominic Company shown below does not balance. DOMINIC COMPANY Trial Balance May 31, 2019 Debit Credit Cash $ 3,850 Accounts Receivable $ 2,750 Prepaid Insurance Equipment 12,000 Accounts Payable 4,500 Unearned Service Revenue 560 Common Stock 11,700 Service Revenue 8,690 Salaries and Wages Expense 4,200 Advertising Expense 1,100 Utilities Expense 800 $30,800 $20,050 Your review of the ledger reveals that each account has a normal balance. You also discover the following errors. 1. The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Utilities Expense were each understated $100. 2. Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were $2,570 and $8,960, respectively.

Answer 1

DOMINIC COMPANY

Corrected Trial Balance

May 31, 2019

	Debit	Credit
Cash ($3,850 +$520 - $405)	$3,965
Accounts Receivable ($2,570 - $420)	$2,150
Prepaid Insurance ($700 + $100)	$800
Supplies	$520
Equipment ($12,000 - $520)	$11,480
Accounts Payable ($4,500 - $100 + $520 - $420)		$4,500
Unearned Service Revenue		$560
Common Stock ($11,700 + $1,000)		$12,700
Service Revenue		$8,960
Salaries and Wages Expense ($4,200 + $200)	$4,400
Advertising Expense ($1,100 + $405)	$1,505
Utilities Expense ($800 + $100)	$900
Dividends	$1,000
Total	$26,720	$26,720