Corrected trial balance
The Colby Group has the following unadjusted trial balance as of August 31, 2016:
The debit and credit totals are not equal as a result of the following errors:
Instructions
1.
Corrected unadjusted trial balance:
The corrected unadjusted trial balance is the summary of all the ledger accounts that appears on the ledger accounts after making adjusting journal entries. The corrected unadjusted trial balance is also known as adjusted trial balance.
To prepare: A corrected unadjusted trial balance as of August 31, 2016.
Working notes:
a.
c.
An amount of $11,000 was not debited to accounts receivable (asset) account. Hence, by debiting the amount, the accounts receivable in the corrected unadjusted trial balance would be $48,000
d.
As a return of defective supplies of $150 was wrongly credited to the supplies (asset) account as $1,500, it is to be corrected by debiting the Supplies account with an amount of $1,350
e.
As the purchase of insurance policy at a cost of $1,200 was wrongly credited to prepaid insurance (asset) account, it is to be corrected by crediting the Prepaid insurance account with an amount of $1,200. Hence, the amount of Prepaid insurance in the corrected unadjusted trial balance would be $3,100
f
2.
To Discuss: Whether the fact of the balancing of unadjusted trial balance in (1) means that there are no errors in the accounts.
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