Sagar Wilm Schmidt, the owner of Wilm's Window Washing Services, had difficulty getting the debits to equal credits on the January 31,2023, trial balance.Wilm's Window Washing ServicesTrial BalanceJanuary 31, 2023CashAccounts receivablePrepaid insuranceEquipmentAccounts payableWilm Schmidt, capitalWilm Schmidt, withdrawalsService revenuesSalaries expenseInsurance expenseMaintenance expenseUtilities expenseTotalDebit$ 12,50010, 1403,30033,0009,860Required:Prepare a corrected trial balance.Credit$ 10,80054,00061,70032,9006,10013,9006,100$127,800 $126,500The following errors were discovered:a. Schmidt did not post a $4,900 purchase of equipment on credit.b. In posting a $1,850 collection from a credit customer, Schmidt debited Accounts Receivable and credited Cash.c. In posting a cash receipt, Schmidt correctly debited Cash for $2,660 but incorrectly credited Accounts Receivable for $6,260.d. In posting a $4,900 payment on account, Schmidt debited Accounts Payable but forgot to post the credit to Cash.e. In posting the entry for services of $2,700 performed for a customer on credit, Schmidt debited Accounts Receivable but creditedMaintenance Expense.

Trial Balance is the statement that records all the assets, liabilities, stockholders' equity,…

Wilm Schmidt, the owner of Wilm's Window Washing Services, had difficulty getting the debits to equal credits on the January 31, 2023, trial balance. Wilm's Window Washing Services Trial Balance January 31, 2023 Cash Accounts receivable Prepaid insurance Equipment Accounts payable Wiln Schmidt, capital Wilm Schmidt, withdrawals Service revenues Salaries expense Insurance expense Maintenance expense Utilities expense Total Debit $ 12,500 10,140 3,300 33,000 Credit Required: Prepare a corrected trial balance. 10,800 54,000 9,860 32,900 6,100 13,900 6,100 $127,800 $126,500 61,700 The following errors were discovered: a. Schmidt did not post a $4,900 purchase of equipment on credit. b. In posting a $1,850 collection from a credit customer, Schmidt debited Accounts Receivable and credited Cash. c. In posting a cash receipt, Schmidt correctly debited Cash for $2,660 but incorrectly credited Accounts Receivable for $6,260. d. In posting a $4,900 payment on account, Schmidt debited Accounts Payable but forgot to post the credit to Cash. e. In posting the entry for services of $2,700 performed for a customer on credit, Schmidt debited Accounts Receivable but credited Maintenance Expense.

Wilm Schmidt, the owner of Wilm's Window Washing Services, had difficulty getting the debits to equal credits on the January 31, 2023, trial balance. Wilm's Window Washing Services Trial Balance January 31, 2023 Cash Accounts receivable Prepaid insurance Equipment Accounts payable Wiln Schmidt, capital Wilm Schmidt, withdrawals Service revenues Salaries expense Insurance expense Maintenance expense Utilities expense Total Debit $ 12,500 10,140 3,300 33,000 Credit Required: Prepare a corrected trial balance. 10,800 54,000 9,860 32,900 6,100 13,900 6,100 $127,800 $126,500 61,700 The following errors were discovered: a. Schmidt did not post a $4,900 purchase of equipment on credit. b. In posting a $1,850 collection from a credit customer, Schmidt debited Accounts Receivable and credited Cash. c. In posting a cash receipt, Schmidt correctly debited Cash for $2,660 but incorrectly credited Accounts Receivable for $6,260. d. In posting a $4,900 payment on account, Schmidt debited Accounts Payable but forgot to post the credit to Cash. e. In posting the entry for services of $2,700 performed for a customer on credit, Schmidt debited Accounts Receivable but credited Maintenance Expense.

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter14: Activities Required In Completing A Quality Audit

Section: Chapter Questions

Problem 65RSCQ

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