Question

Exercise 3-4

The following trial balance of Teal Co. does not balance.

TEAL CO. TRIAL BALANCE JUNE 30, 2017
		Debit			Credit
Cash					$3,099
Accounts Receivable		$3,460
Supplies		1,029
Equipment		4,029
Accounts Payable					2,895
Unearned Service Revenue		1,429
Common Stock					6,229
Retained Earnings					3,229
Service Revenue					2,609
Salaries and Wages Expense		3,629
Office Expense		1,169
Totals		$14,745			$18,061

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 $729 was recorded as a debit to Supplies for $729 and a credit to Accounts Payable for $729.
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 $294 for telephone charges was recorded as a debit to Office Expense for $294 and a debit to Cash for $294.
5.		When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to $554 was performed prior to June 30 (related to Unearned Service Revenue).
6.		A debit posting to Salaries and Wages Expense of $899 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 $804 was debited to Salaries and Wages Expense for $804 and credited to Cash for $804.

Prepare a correct trial balance.

Answer 1

	Debit	Credit
Cash	2691		=3099+(750-570)-294-294
Accounts Receivable	3280		=3460-(750-570)
Supplies	300		=1029-729
Equipment	4758		=4029+729
Accounts Payable		2429	=2895-260-206
Unearned Service Revenue		875	=1429-554
Common Stock		6229
Retained Earnings		3229
Dividends	804
Service revenue		3964	=2609+(890-89)+554
Salaries and wages expense	3724		=3629+899-804
Office expenses	1169
Totals	16726	16726