The trial balance of Loop 340, Inc., at December 31, 20X5, does not balance.

Required
1. How much out of balance is the trial balance? Determine the out-of-balance amount. The error lies in the Accounts Receivable account. Add the out-of-balance amount to, or subtract it from, Accounts Receivable to determine the correct balance of Accounts Receivable.
2. After correcting Accounts Receivable, advise the top management of Loop 340, Inc., on the company's
a. Total assets
b. Total liabilities
c. Net income or net loss for December

Transcribed Image Text:

Cash. $3,900 Common stock..$20,000 Land Accounts payable...5,800 Salary expense Note payable 9,100 3,400