question archive The trial balance of Blues Traveler Corporation does not balance
Subject:AccountingPrice:2.87 Bought7
The trial balance of Blues Traveler Corporation does not balance.
BLUES TRAVELER CORPORATION |
||||||||
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.
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 |