The following trial balance of Avtar Sandhu Co. does not balance. Each of the listed accounts has
Question:
The following trial balance of Avtar Sandhu Co. does not balance.
Each of the listed accounts has a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.1. Cash received from a customer in payment of its account was debited for $580, and Accounts Receivable was credited for the same amount. The actual collection was for $850.2. The purchase of a computer on account for $710 was recorded as a debit to Supplies for $710 and a credit to Accounts Payable for $710.3. Services were performed on account for a client for $980. Accounts Receivable was debited for $980, and Service Revenue was credited for $98.4. A debit posting to Salaries and Wages Expense of $700 was omitted.5. A payment of a balance due for $306 was credited to Cash for $306 and credited to Accounts Payable for $360.6. The withdrawal of $600 cash for Sandhu?s personal use was debited to Salaries and Wages?
Expense for $600 and credited to Cash for $600.
InstructionsPrepare a correct trial balance. (Hint: It helps to prepare the correct journal entry for the transaction described and compare it to the mistake made.)
Step by Step Answer:
College Accounting
ISBN: 1986
1st Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Deanna C. Martin, Jill E. Mitchell