The Lexington Group has the following unadjusted trial balance as of May 31, 2018:

	ACCOUNT TITLE	DEBIT	CREDIT
1	Money	20,350.00
2	accounts receivable	37,000.00
3	supplies	1,100.00
4	prepaid insurance	200.00
5	Equipment	171,175.00
6	Pay		36,000.00
7	Accounts payable		26,000.00
8	Common actions		50,000.00
9	Retained earnings		94,150.00
10	dividends	15,000.00
11	earned fees		429,850.00
12	salary expenses	270,000.00
13	Rental costs	63,000.00
14	advertising expenses	25,200.00
15	Miscellaneous expenses	5,100.00
sixteen	Totals	608,125.00	636,000.00

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

A.	The cash entered into the trial balance was overstated by $7,000.
B.	A cash receipt of $8,200 was posted as a debit to Cash of $2,800.
C.	A debit of $16,500 to Accounts Receivable was not recorded.
D.	A $125 return of defective supplies was erroneously recorded as a $1,250 credit to Supplies.
MI.	An insurance policy purchased at a cost of $3,600 was recorded as a credit to Prepaid Insurance.
F.	The notes payable balance was understated by $9,000.
G.	A credit of $10,000 in Accounts Payable was overlooked in determining the account balance.
h	A $5,000 dividend debit was recorded as a credit to retained earnings.
I.	The balance of $60,300 in rental expenses was entered as $63,000 in the trial balance.
j	Gas, Electricity and Water Expenses were omitted from the trial balance, with a balance of $16,350.

	Required:
1.	Prepare an unadjusted corrected trial balance as of May 31, 2018.
2.	Does the fact that the unadjusted trial balance in (1) is in balance mean that there are no errors in the accounts?

Answer rating: 100% (QA)

SOLUTION To prepare an unadjusted corrected trial balance we need to make adjustments for the errors ... View the full answer