P2-4A
P2-4A The
AVTAR SANDHU CO.
Trial Balance
June 30, 2017
Debit Credit
Cash $ 3,340
Supplies 1,200
Equipment 2,600
Accounts Payable 3,666
Unearned Service Revenue 1,100
Owner’s Capital 8,000
Owner’s Drawings 800
Service Revenue 2,480
Salaries and Wages Expense 3,200
Utilities Expense 810
$12,522 $17,486
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 $580, and
Accounts Receivable was credited for the same amount. The actual collection was for
$850.
2. The purchase of a computer on account for $710 was recorded as a debit to Supplies
for $710 and a credit to Accounts Payable for $710.
3. Services were performed on account for a client for $980. Accounts Receivable was
debited for $980, and Service Revenue was credited for $98.
4. A debit posting to Salaries and Wages Expense of $700 was omitted.
5. A payment of a balance due for $306 was credited to Cash for $306 and credited to
Accounts Payable for $360.
6. The withdrawal of $600 cash for Sandhu’s personal use was debited to Salaries and
Wages Expense for $600 and credited to Cash for $600.
Instructions
Prepare a correct trial balance. (Hint: It helps to prepare the correct
transaction described and compare it to the mistake made.)
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