This trial balance of Michels Co. does not balance.
|
MICHELS CO. |
||
|
Debit |
Credit |
|
|
Cash |
$3,090 |
|
|
Accounts Receivable |
3,190 |
|
|
Supplies |
800 |
|
|
Equipment |
3,000 |
|
|
Accounts Payable |
$3,686 |
|
|
Unearned Service Revenue |
1200 |
|
|
Common Stock |
9,000 |
|
|
Dividends |
800 |
|
|
Service Revenue |
3480 |
|
|
Salaries and Wages Expense |
3,600 |
|
|
Utilities Expense |
910 |
|
|
$13,500 |
$19,256 |
|
Each of the listed accounts has 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 $780, and Accounts Receivable was credited for the same amount. The actual collection was for $870.
2. The purchase of a printer on account for $340 was recorded as a debit to Supplies for $340 and a credit to Accounts Payable for $340.
3. Services were performed on account for a client for $900. Accounts Receivable was debited for $90 and Service Revenue was credited for $900.
4. A debit posting to Salaries and Wages Expense of $700 was omitted.
5. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260.
6. Payment of a $600 cash dividend to Michels” stockholders was debited to Salaries and Wages Expense for $600 and credited to Cash for $600.
Instructions
Prepare the correct trial balance. (Hint:All accounts have normal balances.)