Terry Zelinski, the owner of Royal Mountain Tours, prepared the following trial balance at March 31, 2017.
Question:
A review shows that Terry made the following errors in the accounting records:
1. A purchase of $400 of supplies on account was recorded as a credit to Cash. The debit entry was correct.
2. A $100 credit to Accounts Receivable was posted as $1,000.
3. A journal entry to record service revenue of $770 earned on account was not prepared or posted.
4. A journal entry to record the payment of $240 for an advertising expense was correctly prepared but the credit to Cash was posted as a debit. The debit to Advertising Expense was properly posted.
Instructions
Prepare the correct trial balance at March 31, 2017, using the format shown in the chapter.
Cash Accounts receivable Supplies Equipment Accounts payable T. Zelinski, capital T. Zelinski, drawings Service revenue Advertising expense Salaries expense Total $12,800 4,090 840 7,350 2,500 24,000 3,650 6,750 3,700 400 $35,930 $30,150
Step by Step Answer:
ROYAL MOUNTAIN TOURS Trial Balance March 31 2017 Debit Credit Cash 12...View the full answer
Accounting Principles
ISBN: 978-1119048503
7th Canadian Edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
Related Video
A trial balance is a list of all the general ledger accounts contained in the ledger of a business. This list will contain the name of each nominal ledger account and the value of that nominal ledger balance. Each nominal ledger account will hold either a debit balance or a credit balance
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