Week 2 - Practice: Chapter 2

Question 5 of 5

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The following trial balance of Teal Mountain Co. does not balance.

Teal Mountain C0. Trial Balance June 30, 2020
		Debit		Credit
Cash				$ 3,840
Accounts Receivable		$ 3,110
Supplies		1,250
Equipment		2,400
Accounts Payable				4,099
Unearned Service Revenue		1,400
Owners Capital				8,200
Owners Drawings		1,114
Service Revenue				2,490
Salaries and Wages Expense		2,986
Utilities Expense		800
		$ 13,060		$ 18,629

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 $ 760, and Accounts Receivable was credited for the same amount. The actual collection was for $ 670.
2.		The purchase of a computer on account for $ 700 was recorded as a debit to Supplies for $ 700 and a credit to Accounts Payable for $ 700.
3.		Services were performed on account for a client for $ 900. Accounts Receivable was debited for $ 900, and Service Revenue was credited for $ 90.
4.		A debit posting to Salaries and Wages Expense of $ 800 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 withdrawal of $ 686 cash for Sandhus personal use was debited to Salaries and Wages Expense for $ 686 and credited to Cash for $ 686.

Prepare a correct trial balance. (Hint: It helps to prepare the correct journal entry for the transaction described and compare it to the mistake made.)

TEAL MOUNTAIN CO. Trial Balance choose the accounting period For the Quarter Ended June 30, 2020For the Year Ended June 30, 2020June 30, 2020
	Debit		Credit
enter an account title	$ enter a debit balance		$ enter a credit balance
enter an account title	enter a debit balance		enter a credit balance
enter an account title	enter a debit balance		enter a credit balance
enter an account title	enter a debit balance		enter a credit balance
enter an account title	enter a debit balance		enter a credit balance
enter an account title	enter a debit balance		enter a credit balance
enter an account title	enter a debit balance		enter a credit balance