P2-4B The trial balance of Ron Salem Co. shown below does not balance. Ron Salem Co....
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P2-4B The trial balance of Ron Salem Co. shown below does not balance. Ron Salem Co. Trial Balance June 30, 2014 Debit Credit $ 3,840 Cash Accounts Receivable $ 2,898 800 Supplies Equipment Accounts Payable Unearned Service Revenue Share Capital-Ordinary Dividends Service Revenue Salaries and Wages Expense Utilities Expense 3,000 2,666 2,200 9,000 800 2,380 3,400 910 $14,008 $17,886 Each of the listed accounts has a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors. 1. Cash received from a customer in payment of its account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750. 2. The purchase of a computer on account for $620 was recorded as a debit to Supplies for $620 and a credit to Accounts Payable for $620. 3. Services were performed on account for a client for $890. Accounts Receivable was debited for $890, and Service Revenue was credited for $89. 4. A debit posting to Salaries and Wages Expense of $700 was omitted. 5. A payment of a balance due for $309 was credited to Cash for $309 and credited to Accounts Payable for $390. 6. The payment of a $600 cash dividend was debited to Salaries and Wages Expense $600 and credited to Cash for $600. P2-4B The trial balance of Ron Salem Co. shown below does not balance. Ron Salem Co. Trial Balance June 30, 2014 Debit Credit $ 3,840 Cash Accounts Receivable $ 2,898 800 Supplies Equipment Accounts Payable Unearned Service Revenue Share Capital-Ordinary Dividends Service Revenue Salaries and Wages Expense Utilities Expense 3,000 2,666 2,200 9,000 800 2,380 3,400 910 $14,008 $17,886 Each of the listed accounts has a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors. 1. Cash received from a customer in payment of its account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750. 2. The purchase of a computer on account for $620 was recorded as a debit to Supplies for $620 and a credit to Accounts Payable for $620. 3. Services were performed on account for a client for $890. Accounts Receivable was debited for $890, and Service Revenue was credited for $89. 4. A debit posting to Salaries and Wages Expense of $700 was omitted. 5. A payment of a balance due for $309 was credited to Cash for $309 and credited to Accounts Payable for $390. 6. The payment of a $600 cash dividend was debited to Salaries and Wages Expense $600 and credited to Cash for $600.
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Step 1 Preparation of trail balance with given information Ron Salem Co Trial balance June 302014 Debit Credit Cash 3840 Accounts receivable 2898 Supplies 800 Equipment 3000 Accounts payable 2666 Unea... View the full answer
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