Question

The following trial balance of Sheffield Co. does not balance

SHEFFIELD CO. TRIAL BALANCE JUNE 30, 2017
Debit Credit
Cash $3,227
Accounts Receivable $3,588
Supplies 1,157
Equipment 4,157
Accounts Payable 3,023
Unearned Service Revenue 1,557
Common Stock 6,357
Retained Earnings 3,357
Service Revenue 2,737
Salaries and Wages Expense 3,757
Office Expense 1,297
Totals $15,513 $18,701
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.
1. 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.
2. The purchase of a computer printer on account for $857 was recorded as a debit to Supplies for $857 and a credit to Accounts Payable for $857.
3. Services were performed on account for a client for $890. Accounts Receivable was debited for $890 and Service Revenue was credited for $89.
4. A payment of $422 for telephone charges was recorded as a debit to Office Expense for $422 and a debit to Cash for $422
5. When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to $682 was performed prior to June 30 (related to Unearned Service Revenue)
6. A debit posting to Salaries and Wages Expense of $1,027 was omitted.
7. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260
8. A dividend of $932 was debited to Salaries and Wages Expense for $932 and credited to Cash for $932.
Prepare a correct trial balance. Answer the missing blank part.
SHEFFIELD CO. TRIAL BALANCE JUNE 30, 2017
Debit Credit
Cash $2563 $
Accounts Receivable 3408
Supplies 300
Equipment _____
Accounts Payable 2557
Unearned Service Revenue 875
Common Stock 6357
Retained Earnings 3357
Dividends 932
Service Revenue 4220
Office Expense _____
Salaries and Wages Expense _____
Totals 17366 17366

Answer 1

Step-by-step explanation:

1. The cash balance is as follows:

Cash:

Balance stated in $3227

Cash Collected from -

customer misposted $180

Wrong debit for telephone -

charges $422

Telephone charges $422

Revised Balance $2563

2.

Balance on account receivable ($3408) is gotten by removing $180 (i.e $750 - $570) from $3588.

3.

Supplies = $1,157 - $857 = #300

4.

Equipment: $857 + $4157(computer printer worth) = $5014

5. Accounts Payable:

Balance stated in Trial Balance $3023

Wrong credit to Accounts Payable $260

Payment on account $206

Balance $2557

6.

Unearned Service Revenue = $1557 - $682 (Revenue portion ) = $875

7. No changes occurred in common stock and retained earnings.

8.

Service revenue = unearned revenue ($2737) + $682(revenue portion) + $801(under posting)

Service revenue = $4220

9.

Salaries and wages = $3757 + ($1027) ommission - $932(dividend)

Salaries and wages = $3852

10.

No changes occurred in Office expenses.

11.

Dividened expense = $932

Sheffield Co Trial Balance can be computed as follows:

Accounts Debit Credit

Cash $2563

Accounts Receivable $3408

Supplies $300

Equipment $5014

Accounts Payable $2557

Unearned Service Revenue $875

Common stock $6357

Retained Earnings $3,357

Service Revenue $4220

Salaries & Wages expense $3852

Office Expenses $1297

Dividend $932

$17,366 $17,366