130 Chapter 3 The Accounting Information System E3-3 (L02) Corrected Trial Balance The following trial balance of Blues Traveler Corporation does not balance BLUES TRAVELER CORPORATION TRIAL BALANCE APR 30, 2017 Credit Debit 1912 2007 Cash Accounts Receivable Supplies Equipment Accounts Payable Common Stock Retained Earnings Service Revenue Ohce pense 5 7044 4120 522244 An examination of the ledger shows these errors. 1. Cash received from a customer on account was recorded (both debit and credit) as $1,380 instead of 51.830. 2. The purchase on account of a computer costing $1.200 was recorded as a debit to Office Expense and a credit to Accounts Payable 3. Services were performed on account for a client, $2,250, for which Accounts Receivable was debited $2.250 and Service Revenue was credited $225, 4. A payment of $95 for telephone charges was entered as a debit to Office Expense and a debit to Cash 5 The Service Revenue account was totaled at $5,200 instead of $5,280. Instructions From this information prepare a corrected trial balance E3-11 (L04) (Prepare Financial Statements) The adjusted trial balance of Anderson Cooper Co. as of December 31, 2017, contains the following ANDERSON COOPER CO. ADJUSTED TRIAL BALANCE DECEMBER 31, 2017 Dr. $19,472 6,920 2.280 18,050 Cash Accounts Receivable Prepaid Rent Equipment Accumulated Depreciation Equipment Notes Payable Accounts Payable Common Stock Retained Earnings Dividends Service Revenue Salaries and Wages Expense Rent Expense Depreciation Expense Interest Expense Interest Payable $ 4,895 5,700 5,472 20,000 11,310 3,000 11,590 6,840 2,260 145 83 83 $59,050 $59,050 134 Chapter 3 The Accounting Information System Instructions (a) Prepare an income statement. (b) Prepare a statement of retained earnings. (c) Prepare a classified balance sheet