The trial balance of Smart Tots Child Care does not balance.

The following errors are detected:
a. Cash is understated by $ 1,000.
b. A $ 4,000 debit to Accounts Receivable was posted as a credit.
c. A $ 1,000 purchase of office supplies on account was neither journalized nor posted.
d. Equipment was incorrectly transferred from the ledger as $ 87,000. It should have been transferred as $ 78,500.
e. Salaries Expense is overstated by $ 200.
f. A $ 400 cash payment for advertising expense was neither journalized nor posted.
g. A $ 200 cash dividend was incorrectly journalized as $ 2,000.
h. Service Revenue was understated by $ 5,000.
i. A 12-month insurance policy was posted as a $ 1,200 credit to Prepaid Insurance. Cash was posted correctly.
Prepare the corrected trial balance as of August 31, 2015. Journal entries are notrequired.

  • CreatedJanuary 16, 2015
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