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The following trial balance of Watteau Co. does not balance.

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
Salaries and Wages Expense 3,400
Office Expense    94000000
$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.

a. Cash received from a customer on account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750.
b. 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.
c. Services were performed on account for a client for $890. Accounts Receivable was debited for $890 and Service Revenue was credited for $89.
d. A payment of $65 for telephone charges was recorded as a debit to Office Expense for $65 and a debit to Cash for $65.
e. When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to $325 was performed prior to June 30 (related to Unearned Service Revenue).
f. A debit posting to Salaries and Wages Expense of $670 was omitted.
g. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260.
h. A dividend of $575 was debited to Salaries and Wages Expense for $575 and credited to Cash for $575.

Required:
Prepare a correct trial balance.

User Yuuu
by
4.4k points

1 Answer

3 votes

Answer and Explanation:

The preparation of the correct trial balance is presented below:

Particulars Debit Credit

Cash $2,920

Accounts Receivables $3,051

Supplies $300

Equipment $4,300

Accounts Payables $2,200

Unearned Service Revenue $875

Common Stock $6,000

Dividend $575

Retained Earning $3,000

Service Revenue $3,506

Salaries & Wages $3,495

Telephone Expenses $65

Office Expenses $875

Total $15,581 $15,581

User Eduard Grigorescu
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4.6k points