Question

The following trial balance of Concord Co. does not balance. CONCORD CO. TRIAL BALANCE JUNE 30, 2020 Debit Credit Cash $3,035 $3,096 965 3,965 2,831 1,365 Accounts Receivable Supplies Equipment Accounts Payable Unearned Service Revenue Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Office Expense Totals 6,165 3,165 2,545 3,565 1,105 $14,061 $17,741 Each of the listed accounts should have 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 $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750. 2. The purchase of a computer printer on account for $665 was recorded as a debit to Supplies for $665 and a credit to Accounts Payable for $665. 3. Services were performed on account for a client for $890. Accounts Receivable was debited for $890 and Service Revenue was credited for $89. 4. A payment of $80 for telephone charges was recorded as a debit to Office Expense for $80 and a debit to Cash for $80. 5. When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to $490 was performed prior to June 30 (related to Unearned Service Revenue). 6. A debit posting to Salaries and Wages Expense of $835 was omitted. 7. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260. 8. A dividend of $740 was debited to Salaries and Wages Expense for $740 and credited to Cash for $740.

Answer 1

Solution:

CONCORD CO

Trial Balance

June 30,2020

	Debit	Credit
Cash	3,055
Accounts receivable	2,916
Supplies	300
Equipment	4,630
Accounts payable		2,365
unearned service revenue		875
Common stock		6,165
Dividends	740
Retained earnings		3,165
Service revenue		3,836
Wages expense	3,660
Office expense	1,105
Total	16,406	16,406

Explanation:

Cash = 3035 + 750 - 570 - 80 - 80 = 3,055

Accounts receivable = 3096 - 750 + 570 =2,916

Supplies = 965-665 = 300

Equpment = 3965 + 665 = 4,630

Accounts payable = 2831 - 206 - 260 = 2365

unearned service revenue = 1365 - 490 = 875

Service revenue = 2545 + 890 - 89 + 490 = 3,836

Wages expense = 3565 + 835 - 740 = 3660