The trial balance of Watteau Co. does not balance. Each of the listed accounts should have a

Question:

The trial balance of Watteau Co. does not balance.

                                    

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 $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 service revenue amounting to $325 was performed prior to June 30 (related to Unearned Service Revenue).
  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.

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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-1118147290

15th edition

Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield

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