The trial balance of Smart Tots Child Care, Inc., 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 supplies on account was neither journalized nor posted.
d. Equipment€™s cost is $78,500, not $87,000.
c. Salary expense is overstated by $200.
Requirement
1. Prepare the corrected trial balance at August 31, 2012. Journal entries are notrequired.

Transcribed Image Text:

SMART TOTS CHILD CARE, INC. Trial Balance August 31, 2012 Debit Credit Account $ 6,700 Cash 2$ Accounts rececivable 7,000 Supplies Equipment Accounts payable Common stock 700 87,000 $ 53,000 50,500 Dividends 2,400 Scrvice revenuc 4,700 Salary expense 3,600 Rent expense 500 $ 107,900 S 108,200 Total