The trial balance of the Mukhtar Company shown below does not balance.
Mukhtar Company
Trial Balance
September 30, 2019
Debit Credit
Cash $ 3,850
Accounts Receivable $ 2,750
Prepaid Insurance 700
Equipment 12,000
Accounts Payable 4,500
Unearned Service Revenue 560
Common Stock 11,700
Service Revenue 8,690
Salaries and Wages Expense 4,200
Advertising Expense 1,100
Utilities Expense 800
$30,800 $20,050
Your review of the ledger reveals that each account has a normal balance. You also discover the following errors.
- The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Utilities Expense were each understated $100.
- Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were $2,570 and $8,960, respectively.
- A debit posting to Salaries and Wages Expense of $200 was omitted.
- A $1,000 cash dividend was debited to Common Stock for $1,000 and credited to Cash for $1,000.
- A $520 purchase of supplies on account was debited to Equipment for $520 and credited to Cash for $520.
- A cash payment of $450 for advertising was debited to Advertising Expense for $45 and credited to Cash for $45.
- A collection from a customer for $420 was debited to Cash for $420 and credited to Accounts Payable for $420.
Instructions
- Prepare a correct trial balance. Note that the chart of accounts includes the following:
Dividends and Supplies.
- Make T accounts and post the corrections in these accounts to reach the corrected trial balance
The trial balance of the Mukhtar Company shown below does not balance.
Mukhtar Company
Trial Balance
September 30, 2019
Debit Credit
Cash $ 3,850
Accounts Receivable $ 2,750
Prepaid Insurance 700
Equipment 12,000
Accounts Payable 4,500
Unearned Service Revenue 560
Common Stock 11,700
Service Revenue 8,690
Salaries and Wages Expense 4,200
Advertising Expense 1,100
Utilities Expense 800
$30,800 $20,050
Your review of the ledger reveals that each account has a normal balance. You also discover the following errors.
- The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Utilities Expense were each understated $100.
- Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were $2,570 and $8,960, respectively.
- A debit posting to Salaries and Wages Expense of $200 was omitted.
- A $1,000 cash dividend was debited to Common Stock for $1,000 and credited to Cash for $1,000.
- A $520 purchase of supplies on account was debited to Equipment for $520 and credited to Cash for $520.
- A cash payment of $450 for advertising was debited to Advertising Expense for $45 and credited to Cash for $45.
- A collection from a customer for $420 was debited to Cash for $420 and credited to Accounts Payable for $420.
Instructions
- Prepare a correct trial balance. Note that the chart of accounts includes the following:
Dividends and Supplies.
- Make T accounts and post the corrections in these accounts to reach the corrected trial balance
Related questions
The trial balance of Dominic Company shown below does notbalance.
DOMINIC COMPANY | ||||
Debit | Credit | |||
Cash | $5,840 | |||
| Accounts Receivable | $2,730 | |||
| Prepaid Insurance | 810 | |||
| Equipment | 13,990 | |||
| Accounts Payable | 6,490 | |||
| Unearned Service Revenue | 670 | |||
| Common Stock | 13,690 | |||
| Service Revenue | 8,670 | |||
| Salaries and Wages Expense | 4,310 | |||
| Advertising Expense | 990 | |||
| Utilities Expense | 800 | |||
$35,090 | $23,900 | |||
Your review of the ledger reveals that each account has a normalbalance. You also discover the following errors.
| 1. | The totals of the debit sides of Prepaid Insurance, AccountsPayable, and Utilities Expense were each understated $100. | |
| 2. | Transposition errors were made in Accounts Receivable andService Revenue. Based on postings made, the correct balances were$2,370 and $8,760, respectively. | |
| 3. | A debit posting to Salaries and Wages Expense of $200 wasomitted. | |
| 4. | A $1,100 cash dividend was debited to Common Stock for $1,100and credited to Cash for $1,100. | |
| 5. | A $460 purchase of supplies on account was debited to Equipmentfor $460 and credited to Cash for $460. | |
| 6. | A cash payment of $490 for advertising was debited toAdvertising Expense for $49 and credited to Cash for $49. | |
| 7. | A collection from a customer for $460 was debited to Cash for$460 and credited to Accounts Payable for $460. |
Prepare a correct trial balance. (Hint: It helps toprepare the correct journal entry for the transaction described andcompare it to the mistake made.)
Prepare adjusting journal entries and an adjusted trialbalance.
| Ad MenAdvertising, Inc. Trial Balance November 30, 2012 | ||
| Account | Debit | Credit |
| Cash | $ 30,100 | |
| Accounts Receivable | 22,800 | |
| Prepaid Insurance | 2,700 | |
| Supplies | 1,200 | |
| Equipment | 59,000 | |
| Accumulated Depreciation, Equipment | $ 50,000 | |
| Accounts Payable | 3,100 | |
| Salaries Payable | ||
| Unearned Service Revenue | 2,900 | |
| Common Stock | 25,000 | |
| Retained Earnings | 25,300 | |
| Dividends | 1,000 | |
| Service Revenue | 13,900 | |
| Salaries Expense | 3,400 | |
| Insurance Expense | ||
| Depreciation Expense, Equipment | ||
| Utilities Expense | ||
| Supplies Expense | ||
| Total | $120,200 | $120,200 |
Insurance coverage still remaining at November 30, $700.
Supplies used during the month, $400.
Depreciation for the month, $3,400.
Accrued utilities expense at November 30, $700. (use AccountsPayable as the liability account needed)
Accrued salaries at November 30, $1,000.
Service revenue still unearned at November 30, $1,300.
Part A
Open T-accounts for the accounts listed in the trial balance andinsert their November 30 unadjusted balances. Journalize theadjusting entries and post them to the T-accounts. Reference theposted amounts by letter, (a) through (f). Calculate the adjustedbalance in each account.
Part B
Prepare the adjusted trial balance at November 30, 2012.
Part C
How will the company use the adjusted trial balance?
(Complete the income and balance statementcolumns).
| DrewConsulting | |||||||
| Worksheet (Partial) | |||||||
| 31-Dec-14 | |||||||
| Adjusted | Income | Balance | |||||
| Trial Balance | Statement | Sheet | |||||
| Account Title | Debit | Credit | Debit | Credit | Debit | Credit | |
| Cash | $27,460 | ||||||
| Accounts Receivable | 1,000 | ||||||
| Office Supplies | 150 | ||||||
| Equipment | 1,500 | ||||||
| Accum. Depr.ââ¬âEquip. | $25 | ||||||
| Furniture | 3,900 | ||||||
| Accum. Depr.ââ¬âFurn. | 65 | ||||||
| Accounts Payable | 4,100 | ||||||
| Unearned Revenue | 1,200 | ||||||
| Salaries Payable | 567 | ||||||
| Common Stock | 26,000 | ||||||
| Dividends | 2,500 | ||||||
| Service Revenue | 6,200 | ||||||
| Rent Expense | 500 | ||||||
| Utilities Expense | 340 | ||||||
| Supplies Expense | 150 | ||||||
| Salaries Expense | 567 | ||||||
| Depr. Expenseââ¬âEquip. | 25 | ||||||
| Depr. Expenseââ¬âFurn. | 65 | ||||||
| $38,157 | $38,157 | ||||||
| Net income or loss | |||||||
