Joel Rivlin studied accounting in college and then worked as an accountant for a local real estate company. After becoming a CPA, Joel decided to start his own company, Joel Rivlin, CPA. 

Robert’s Excavating Services came to Joel with a problem. The company’s trial balance shows total debits of $76,240 and total credits of $75,090. The owner knows that clients paid for services worth at least $2,500 during the month, but the Service Revenue account balance is only $800. The owner also wrote a check for $550 for advertising, but the Advertising Expense account shows a zero balance. 

INSTRUCTIONS

1. Describe what Joel should do to find the problems.

2. Suggest probable causes for the trial balance being out of balance.