Terry Zelinski, the owner of Royal Mountain Tours, prepared the following trial balance at March 31, 2024.
Question:
Terry Zelinski, the owner of Royal Mountain Tours, prepared the following trial balance at March 31, 2024.
A review shows that Terry made the following errors in the accounting records:
1. A purchase of $400 of supplies on account was recorded as a credit to Cash. The debit entry was correct.
2. A $100 credit to Accounts Receivable was posted as $1,000.
3. A journal entry to record service revenue of $770 earned on account was not prepared or posted.
4. A journal entry to record the payment of $240 for an advertising expense was correctly prepared but the credit to Cash was posted as a debit. The debit to Advertising Expense was properly posted.
Instructions
Prepare the correct trial balance at March 31, 2024, using the format shown in the chapter.
Step by Step Answer:
Accounting Principles Volume 1
ISBN: 9781119786818
9th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak