The trial balance for Finders Company does not balance and the information as follows has been presented:
Question:
The trial balance for Finders Company does not balance and the information as follows has been presented:
Finders Company | ||
Trial Balance | ||
February 29, 2020 | ||
Account | Debit | Credit |
Cash | 6,300 | |
Accounts receivable | 6,000 | |
Supplies | 400 | |
Equipment | 22,300 | |
Computers | 49,000 | |
Accounts payable | 2,800 | |
Notes payable | 18,500 | |
Wright, Capital | 50,000 | |
Wright, Drawing | 4,000 | |
Service revenue | 4,100 | |
Salary Expense | 1,400 | |
Rent expense | 800 | |
Advertising expense | 900 | |
Utilities expense | 800 | |
Total | 91,900 | 75,400 |
The following errors were detected:
- The cash balance is overstated by $5,000.
- Rent expense of $340 was erroneously posted as a credit rather than a debit.
- A $6,800 credit to Service revenue was not posted.
- A $400 debit to Accounts receivable was posted as $40.
- The balance of Utilities expense is understated by $70.
- A $900 purchase of supplies on account was neither journalized nor posted.
- Equipment should be $16,490.
Requirement
1. Prepare the corrected trial balance on February 29, 2020. Journal entries are not required.
2. Prepare the company's financial statements for the month of February 2020.
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver