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The following trial balance of Pronghorn Traveler Corporation does not balance. Pronghorn Traveler Corporation Trial Balance April 30, 2020 Debit Credit Cash $6,632 Accounts Receivable 5,600 Supplies 3,327 Equipment 6,460 Accounts Payable $7,404 Common Stock 8,360 Retained Earnings 2,360 Service Revenue 5,560 Office Expense 4,680 $26,699 $23,684 An examination of the ledger shows these errors.

1. Cash received from a customer on account was recorded (both debit and credit) as $1,940 instead of $2,210.
2. The purchase on account of a computer costing $3,080 was recorded as a debit to Office Expense and a credit to Accounts Payable.
3. Services were performed on account for a client, $2,610, for which Accounts Receivable was debited $2,610 and Service Revenue was credited $585.
4. A payment of $455 for telephone charges was entered as a debit to Office Expense and a debit to Cash.
5. The Service Revenue account was totaled at $5,560 instead of $5,640.

1 Answer

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Answer:

adjusting entries:

1. Cash received from a customer on account was recorded (both debit and credit) as $1,940 instead of $2,210.

Dr Cash 270

Cr Accounts receivable 270

2. The purchase on account of a computer costing $3,080 was recorded as a debit to Office Expense and a credit to Accounts Payable.

Dr Equipment 3,080

Cr Office expense 3,080

3. Services were performed on account for a client, $2,610, for which Accounts Receivable was debited $2,610 and Service Revenue was credited $585.

Dr Accounts receivable 0

Cr Service revenue 2,025

4. A payment of $455 for telephone charges was entered as a debit to Office Expense and a debit to Cash.

Dr Office expense 0

Cr Cash 910

5. The Service Revenue account was totaled at $5,560 instead of $5,640.

Cr Service revenue 80

the adjusted trial balance should be:

Debit Credit

Cash $5,992

Accounts Receivable $5,330

Supplies $3,327

Equipment $9,540

Accounts Payable $7,404

Common Stock $8,360

Retained Earnings $2,360

Service Revenue $7,665

Office Expense $1,600

Totals $25,789 $25,789

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