On January 1, 2020, Paula Fernandes started a new business called Wicked Dance. Near the end of the year, she hired a new bookkeeper without checking references or requesting an academic transcript. As a result, a number of mistakes have been made in preparing the following trial balance:

Paula?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.

Transcribed Image Text:

Wicked Dance Trial Balance December 31, 2020 Debit Credit $ 5,500 Cash. $ 7,900 Accounts receivable. 2,650 Office supplies. Office equipment. Accounts payable 20,500 9,465 16,745 Paula Fernandes, Capital. Services revenue 22,350 Wages expense 6,000 Rent expense 4,800 Advertising expense 1,250 $45,395 $52,340 Totals.