question archive The trial balance of Blues Traveler Corporation does not balance

The trial balance of Blues Traveler Corporation does not balance

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The trial balance of Blues Traveler Corporation does not balance.

BLUES TRAVELER CORPORATION
TRIAL BALANCE
APRIL 30, 2014

   

Debit

 

Credit

Cash     $6,252          
Accounts Receivable     5,410          
Supplies     3,137          
Equipment     6,270          
Accounts Payable             $7,214  
Common Stock             8,170  
Retained Earnings             2,170  
Service Revenue             5,370  
Office Expense     4,490          
     

$25,559

     

$22,924

 


An examination of the ledger shows these errors.

1.   Cash received from a customer on account was recorded (both debit and credit) as $1,550 instead of $2,000.
2.   The purchase on account of a computer costing $2,677 was recorded as a debit to Office Expense and a credit to Accounts Payable.
3.   Services were performed on account for a client, $2,420, for which Accounts Receivable was debited $2,420 and Service Revenue was credited $395.
4.   A payment of $265 for telephone charges was entered as a debit to Office Expense and a debit to Cash.
5.   The Service Revenue account was totaled at $5,370 instead of $5,450.


From this information, prepare a corrected trial balance.

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Answer:

Corrected trial balance

  Debit Credit
Cash 6172  
Account receivable 4960  
Supplies 3137  
Equipment 8947  
Accounts paayble   7214
Common stock   8170
Retained Earnings   2170
Service revenue   7475
Office expense 1813  
total 25,029 25,029