Correcting errors in a trial balance [15-25 min]The trial balance of Smart Tots Child Care...

Correcting errors in a trial balance [15-25 min]

The trial balance of Smart Tots Child Care, Inc., does not balance.

The following errors are detected:

a. Cash is understated by $1,000.

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b A $4,000 debit to Accounts receivable was posted as a credit.

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c. A $1,000 purchase of supplies on account was neither journalized nor posted.

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d. Equipment’s cost is $78,500, not $87,000.

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e. Salary expense is overstated by $200.

Requirements

1. Prepare the corrected trial balance at August 31, 2012. Journal entries are notrequired.