Question: On January 1, 2014, Bev Horricks started a new business called Dance-A-Lot. Near the end of the year, she hired a new bookkeeper without making

On January 1, 2014, Bev Horricks started a new business called Dance-A-Lot. Near the end of the year, she hired a new bookkeeper without making a careful reference check. As a result, a number of mistakes have been made in preparing the following trial balance:
On January 1, 2014, Bev Horricks started a new business

Bev's analysis of the situation has uncovered these errors:
a. The sum of the debits in the Cash account is $37,175 and the sum of the credits is $30,540.
b. A $275 payment from a credit customer was posted to Cash but was not posted to Accounts Receivable.
c. A credit purchase of office supplies for $400 was not posted at all.
d. A transposition error occurred in copying the balance of the Services Revenue account to the trial balance. The correct amount was $23,250.
Other errors were made in placing account balances in the wrong trial balance columns and in taking the totals of the columns.
Required
Prepare a corrected trial balance.

Dance-A-Lot Trial Balance December 31, 2014 Debit 5,500 Credit Cash Accounts receivable Office supplies Office equipment.... Accounts payable. Bev Horricks, capital.16,745 s 7,900 2,650 20,500 9,465 Wages expense Rent expense Advertising expense Totals... 4,35 $$2,340 22,350 6,000 4,800 1,250 - _ $45,395

Step by Step Solution

3.49 Rating (152 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

DANCEALOT Trial Balance December 31 2014 Account Title Cash 37175 30540 Accounts receivable ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

734-B-A-A-P (1167).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!