Menu
support@graduatecourseshelp.com
+1(805) 568 7317

prepare a correct trial balance note it may be necessary to add one or more accounts 643719

(Corrected Trial Balance) 4 The following trial balance of Oakley Co. does not balance.

OAKLEY CO.
  TRIAL BALANCE
  JUNE 30, 2012

 

Debit

Credit

Cash

 

$2,870

Accounts   Receivable

$3,231

 

Supplies

800

 

Equipment

3,800

 

Accounts   Payable

 

2,666

Unearned   Service Revenue

1,200

 

Common   Stock

 

6,000

Retained   Earnings

 

3,000

Service   Revenue

 

2,380

Salaries   and Wages Expense

3,400

 

Office   Expense

940

 
 

$13,371

$16,916

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 $370, and Accounts Receivable was credited for the same amount. The actual collection was for $730.

2. The purchase of a computer printer on account for $500 was recorded as a debit to Supplies for $500 and a credit to Accounts Payable for $500.

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 $65 for telephone charges was recorded as a debit to Office Expense for $65 and a debit to Cash for $65.

5. When the Unearned Service Revenue account was reviewed, it was found that $225 of the balance was earned prior to June 30.

6. A debit posting to Salaries and Wages Expense of $670 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 $575 was debited to Salaries and Wages Expense for $575 and credited to Cash for $575.

Instructions

Prepare a correct trial balance. (Note: It may be necessary to add one or more accounts to the trial balance.)

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"GET15"

Order Now