Question

The trial balance of Blues Traveler Corporation does not balance.

Debit Credit
Cash $5,992
Accounts Receivable 5,280
Supplies 3,007
Equipment 6,140
Accounts Payable $7,084
Common Stock 8,040
Retained Earnings 2,040
Service Revenue 5,240
Office Expense 4,360
$24,779 $22,404

An examination of the ledger shows these errors.
1. Cash received from a customer on account was recorded (both debit and credit) as $1,620 instead of $1,890.
2. The purchase on account of a computer costing $3,360 was recorded as a debit to Office Expense and a credit to Accounts Payable.
3. Services were performed on account for a client, $2,290, for which Accounts Receivable was debited $2,290 and Service Revenue was credited $265.
4. A payment of $135 for telephone charges was entered as a debit to Office Expense and a debit to Cash.
5. The Service Revenue account was totaled at $5,240 instead of $5,320.

Required:
From this information prepare a corrected trial balance.

Answer 1

Total DEBIT SIDE $24,509

Total CREDIT SIDE $24,509

Step-by-step explanation:

Preparation of a corrected trial balance..

BLUES TRAVELER CORPORATION

Trial Balance April 30,2020

DEBIT SIDE

Cash $5,992

(5992+270-135-135=$5,992)

(1,890-1,620=270)

Accounts Receivable $5,010

(5,280-270=$5,010)

(1,890-1,620=270)

Supplies $3,007

Equipment $9,500

(6,140+3,360=$9,500)

Office Expense $1,000

(4,360-3,360=$1,000)

Total DEBIT SIDE $24,509

CREDIT SIDE

Accounts payable $7,084

Common stock $8,040

Retained earnings $2,040

Service revenue $7,345

(5,240+2,025+80=$7,345)

(2,290-265=2,025)

($5,320 - $5,240=80)

Total CREDIT SIDE $24,509

Therefore the corrected trial balance Total DEBIT SIDE and Total CREDIT SIDE will be $24,509