Resolving Errors and Correcting a Trial Balance

Assume we examine the accounts of Century Inc. and identify the following four errors.

1. Equipment purchased for $15,000 at year-end was debited to Expenses.
2. Sales on credit of $1,658 were debited to Accounts Receivable for $1,784 and credited to Revenues for $1,658.
3. A $12,000 cash collection on accounts receivable was debited to Cash and credited to Revenues.
4. The inventory amount is understated by $4,000 because the entry to record the purchase of inventory was incorrectly recorded in cost of goods sold (cost of goods sold is included in Expenses).

The unadjusted trial balance of Century Inc. is provided below. Prepare a corrected unadjusted trial balance.

Note: Do not use negative sign in your answers.

	Unadjusted Trial Balance			Corrected Unadjusted Trial Balance
Accounts	Debit	Credit		Debit	Credit
Cash	$ 71,126	$
Accounts receivable	62,000
Allowance for doubtful accounts	(4,000)
Inventory		36,000
Equipment	363,000
Accumulated depreciation		24,000
Accounts payable		36,000
Notes payable		50,000
Common stock		360,000
Retained earnings		28,000
Revenues		150,000
Expenses	120,000
Net earnings	$648,126	$648,000