The trial balance of Sam's Deli Inc. at October 31, 2020, does not balance:

The accounting records contain the following errors:

a. Recorded a \(\$ 1,000\) cash revenue transaction by debiting Accounts Receivable. The credit entry was correct.

b. Posted a \(\$ 1,000\) credit to Accounts Payable as \(\$ 100\).

c. Did not record utilities expense or the related account payable in the amount of \(\$ 200\).

d. Understated Share Capital by \(\$ 1,100\)

e. Omitted insurance expense of \(\$ 1,000\) from the trial balance.
{Requirements}
1. Prepare the correct trial balance at October 31, 2020, complete with a heading. Journal entries are not required but will be helpful in correcting the trial balance.
2. Organize the elements of the trial balance in a way that would assist a bank manager who has to decide whether to loan money to Sam's Deli.

Transcribed Image Text:

A 1 Cash 2 Accounts receivable 3 Inventory B $ 4,200 13,000 17,000 C D 4 Supplies 600 5 Land 55,000 6 Accounts payable $ 12,000 7 Share capital 8 Sales revenue 47,900 32,100 9 Salary expense 1,700 10 Rent expense 800 13 123 Utilities expense 700 Total $93,000 S 92,000