Corrected Trial Balance The Colby Group has the following unadjusted trial balance as of August 31, 2019.
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Question:
Corrected Trial Balance
The Colby Group has the following unadjusted trial balance as of August 31, 2019.
The Colby Group Unadjusted Trial Balance August 31, 2019 | ||||
Debit Balances | Credit Balances | |||
Cash | 20,550 | |||
Accounts Receivable | 36,780 | |||
Supplies | 4,830 | |||
Prepaid Insurance | 5,200 | |||
Equipment | 117,000 | |||
Notes Payable | 48,500 | |||
Accounts Payable | 10,440 | |||
Terry Colby, Capital | 75,010 | |||
Terry Colby, Drawing | 25,500 | |||
Fees Earned | 385,100 | |||
Wages Expense | 228,486 | |||
Rent Expense | 45,000 | |||
Advertising Expense | 17,200 | |||
Miscellaneous Expense | 12,300 | |||
512,846 | 519,050 |
The debit and credit totals are not equal as a result of the following errors:
- The balance of cash was overstated by $11,000.
- A cash receipt of $6,100 was posted as a debit to Cash of $1,600.
- A debit of $3,800 to Accounts Receivable was not posted.
- A return of $217 of defective supplies was erroneously posted as a $271 credit to Supplies.
- An insurance policy acquired at a cost of $800 was posted as a credit to Prepaid Insurance.
- The balance of Notes Payable was overstated by $10,000.
- A credit of $1,560 in Accounts Payable was overlooked when determining the balance of the account.
- A debit of $2,700 for a withdrawal by the owner was posted as a debit to Terry Colby, Capital.
- The balance of $12,700 in Advertising Expense was entered as $17,200 in the trial balance.
- Gas, Electricity, and Water Expense, with a balance of $3,310, was omitted from the trial balance.
Required:
1. Prepare a corrected unadjusted trial balance as of August 31, 2019. For those boxes in which no entry is required, leave the box blank.
The Colby Group | ||
Unadjusted Trial Balance | ||
August 31, 2019 | ||
| Debit Balances | Credit Balances |
Cash | ||
Accounts Receivable | ||
Supplies | ||
Prepaid Insurance | ||
Equipment | ||
Notes Payable | ||
Accounts Payable | ||
Fees Earned | ||
Terry Colby, Capital | ||
|
2. Does the fact that the unadjusted trial balance in (1) is balanced mean that there are no errors in the accounts?
No
Related Book For
Accounting
ISBN: 978-1337899451
27th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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