Paul Regan, bookkeeper of Hampton Co., has been up half the night trying to get his trial balance to balance. His results are shown below. Ken Small, the accountant, compared Paul’s amounts in the trial balance with those in the ledger, recomputed each account balance, and compared postings. Ken found the 10 errors listed below the trial balance.

1. $200 debit to D. Hole, Withdrawals, was posted as a credit.
2. D. Hole, Withdrawals, was listed on the trial balance as a credit.
3. A Note Payable account with a credit balance of $2,400 was not listed on the trial balance.
4. The pencilled footings for Accounts Payable were debits of $5,320 and credits of $8,800.
5. A debit of $180 to Prepaid Rent was not posted.
6. The entry for office supplies bought for $60 was posted as a credit to Office Supplies.
7. A debit of $120 to Accounts Receivable was not posted.
8. A cash payment of $420 was credited to Cash for $240.
9. The pencilled footing of the credits to Cash was overstated by $400.
10. Utilities Expense of $260 was listed in the trial balance as $26.

Assist Paul Regan by preparing a correct trial balance. How would you explain to Paul the implications of what happened? Put your answers in writing.

Transcribed Image Text:

Office Sales Cash Accounts Receivable Office Equipment Accounts Payable D. Hole, Capital D. Hole, Withdrawals Wages Expense Rent Expense Utilities Expense Office Supplies Prepaid Rent HAMPTON CO. TRIAL BALANCE JUNE 30, 2022 Dr. 326000 566000 840000 260000 94000 2600 12000 18000 Cr. 572000 416000 1156000 70000