question archive (Corrected Trial Balance) The trial balance of Oakley Co
Subject:AccountingPrice: Bought3
(Corrected Trial Balance) The trial balance of Oakley Co. does not balance.
OAKLEY CO. T RIAL B ALANCE J UNE 30, 2010 |
||
|
Debit |
Credit |
Cash |
|
$ 2,870 |
Accounts Receivable |
$ 3,231 |
|
Supplies |
800 |
|
Equipment |
3,800 |
|
Accounts Payable |
|
2,666 |
Unearned Service Revenue |
1,200 |
|
Common Stock |
|
6,000 |
Retained Earnings |
|
3,000 |
Service Revenue |
|
2,380 |
Wages Expense |
3,400 |
|
Office Expense |
940 |
|
|
$13,371 |
$16,916 |
Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.
1. Cash received from a customer on account was debited for $370, and Accounts Receivable was credited for the same amount. The actual collection was for $730.
2. The purchase of a computer printer on account for $500 was recorded as a debit to Supplies for $500 and a credit to Accounts Payable for $500.
3. Services were performed on account for a client for $890. Accounts Receivable was debited for $890 and Service Revenue was credited for $89.
4. A payment of $65 for telephone charges was recorded as a debit to Office Expense for $65 and a debit to Cash for $65.
5. When the Unearned Service Revenue account was reviewed, it was found that $225 of the balance was earned prior to June 30.
6. A debit posting to Wages Expense of $670 was omitted.
7. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260.
8. A dividend of $575 was debited to Wages Expense for $575 and credited to Cash for $575.
Instructions
Prepare a correct trial balance. ( Note: It may be necessary to add one or more accounts to the trial balance.)