Corrected Trial Balance

The Colby Group has the following unadjusted trial balance as of August 31, 2019.

The Colby Group Unadjusted Trial Balance August 31, 2019
	Debit Balances		Credit Balances
Cash	20,550
Accounts Receivable	36,780
Supplies	4,830
Prepaid Insurance	5,200
Equipment	117,000
Notes Payable			48,500
Accounts Payable			10,440
Terry Colby, Capital			75,010
Terry Colby, Drawing	25,500
Fees Earned			385,100
Wages Expense	228,486
Rent Expense	45,000
Advertising Expense	17,200
Miscellaneous Expense	12,300
	512,846		519,050

The debit and credit totals are not equal as a result of the following errors:

1. The balance of cash was overstated by $11,000.
2. A cash receipt of $6,100 was posted as a debit to Cash of $1,600.
3. A debit of $3,800 to Accounts Receivable was not posted.
4. A return of $217 of defective supplies was erroneously posted as a $271 credit to Supplies.
5. An insurance policy acquired at a cost of $800 was posted as a credit to Prepaid Insurance.
6. The balance of Notes Payable was overstated by $10,000.
7. A credit of $1,560 in Accounts Payable was overlooked when determining the balance of the account.
8. A debit of $2,700 for a withdrawal by the owner was posted as a debit to Terry Colby, Capital.
9. The balance of $12,700 in Advertising Expense was entered as $17,200 in the trial balance.
10. Gas, Electricity, and Water Expense, with a balance of $3,310, was omitted from the trial balance.

Required:

1.   Prepare a corrected unadjusted trial balance as of August 31, 2019. For those boxes in which no entry is required, leave the box blank.

The Colby Group
Unadjusted Trial Balance
August 31, 2019
	Debit Balances	Credit Balances
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Equipment
Notes Payable
Accounts Payable
Fees Earned
Terry Colby, Capital

2.   Does the fact that the unadjusted trial balance in (1) is balanced mean that there are no errors in the accounts?
No 

Answer rating: 100% (QA)

The Colby Group Corrected Unadjusted Trial Balance August 31 2019 DebitBalances CreditBalance... View the full answer