Question

The following trial balance of Blues Traveler Corporation does not balance.

Blues Traveler Corporation Trial Balance April 30, 2020

Debit Credit
Cash $5,912
Accounts Receivable 5,240
Supplies 2,967
Equipment 6,100
Accounts Payable $7,044
Common Stock 8,000
Retained Earnings 2,000
Service Revenue 5,200
Office Expense 4,320 00000
$24,539 $22,244

An examination of the ledger shows these errors.

1. Cash received from a customer on account was recorded (both debit and credit) as $1,380 instead of $1,830.
2. The purchase on account of a computer costing $3,200 was recorded as a debit to Office Expense and a credit to Accounts Payable.
3. Services were performed on account for a client, $2,250, for which Accounts Receivable was debited $2,250 and Service Revenue was credited $225.
4. A payment of $95 for telephone charges was entered as a debit to Office Expense and a debit to Cash.
5. The Service Revenue account was totaled at $5,200 instead of $5,280.

Required:
From this information prepare a corrected trial balance.

Answer 1

1. Cash received from a customer on account was recorded (both debit and credit) as $1,380 instead of $1,830.

Dr Cash 450

Cr Accounts receivable 450

2. The purchase on account of a computer costing $3,200 was recorded as a debit to Office Expense and a credit to Accounts Payable.

Dr Equipment 3,200

Cr Office expense 3,200

3. Services were performed on account for a client, $2,250, for which Accounts Receivable was debited $2,250 and Service Revenue was credited $225.

Cr Service revenue 2,025

4. A payment of $95 for telephone charges was entered as a debit to Office Expense and a debit to Cash.

Cr Cash 190

5. The Service Revenue account was totaled at $5,200 instead of $5,280.

Cr Service revenue 80

adjusted trial balance

debit credit

Cash $6,172

Accounts Receivable $4,790

Supplies $2,967

Equipment $9,300

Accounts Payable $7,044

Common Stock $8,000

Retained Earnings $2,000

Service Revenue $7,305

Office Expense $1,120

$24,349 $24,349