Question

The following trial balance of Coronado Co. does not balance. CORONADO CO. TRIAL BALANCE JUNE 30, 2020 Debit Credit Cash $3,147 Accounts Receivable $2,964 Supplies 1,077 Equipment 4,077 Accounts Payable 2,943 Unearned Service Revenue 1,477 Common Stock 6,277 Retained Earnings 3,277 Service Revenue 2,657 Salaries and Wages Expense 3,677 Office Expense 1,217 Totals $14,489 $18,301 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 $777 was recorded as a debit to Supplies for $777 and a credit to Accounts Payable for $777. 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 $70 for telephone charges was recorded as a debit to Office Expense for $70 and a debit to Cash for $70. 5. When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to $602 was performed prior to June 30 (related to Unearned Service Revenue). 6. A debit posting to Salaries and Wages Expense of $947 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 $852 was debited to Salaries and Wages Expense for $852 and credited to Cash for $852. Prepare a correct trial balance.

Answer 1

The adjusted Trail Balance of CORONADO.CO and its calculations as follows:

CORONADO CO.
TRIAL BALANCE AS ON JUNE 30 2020
Particulars	$	$
Cash	4,039
Accounts Recievable	2,784
Supplies	300
Equipments	4,854
Accounts Payable		2,477
Service Revenue		4,060
Unearned Service Revenue		875
Salaries and Wages	3,772
Office expenses	1,217
Divident		852
Common stock		6,277
Retained Earnings		2,425
	16,966	16,966

Notes

CASH
Given	3147
ADD: Collection under stated (750-570	180
ADD: Dividend credited	852
LESS: Debited telephone expenses+ debit cash	140
	4039

Accounts receivable:
Accounts receivable:	2,964
Less Differnce (750-570	-180
	2,784

supplies
supplies	1077
less: computer printer	777
	300

Equipments
Given	4,077
add: computer printer	777
	4,854

Accounts Payble
ACCOUNTS PAYABLE	2,943
LESS: Accounts Payable	-260
LESS: Credited cash	-206
	2,477

Service Revenue
Service Revenue (Given)	2,657
add: wrongly recorded in unearned revenue	602
add: wrongly recorded amount( 890-89	801
	4,060

unearned Revenue
unearned Revenue	1,477
Less: service already provided but recorded as unearned income	-602
	875

Salary And Wages
Salaries and wages	3,677
Add: Omited to record	947
less: dividend paid recorded in salary	-852
	3,772

Office Expenses including Telephone expense

1,217

Divident new account created: 852

No change in common stock: 6277

Retained earnings:
Given:	3,277
less: dividend paid :	852
	2,425