Correcting errors in a trial balance
The following trial balance of Joy McDowell Tutoring Service at May 31, 2012, does not balance:
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JOY MCDOWELL TUTORING SERVICE Trial Balance 31-May-12 |
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Balance |
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|
Account |
Debit |
Credit |
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Cash |
$ 3,000 |
|
|
Accounts receivable |
2,000 |
|
|
Supplies |
600 |
|
|
Computer equipment |
25,800 |
|
|
Accounts payable |
11,400 |
|
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McDowell, capital |
11,600 |
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Service revenue |
9,800 |
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Salary expense |
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|
Rent expense |
1,700 |
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|
700 |
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Utilities expense |
500 |
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Total |
34,300 |
32,800 |
Investigation of the accounting records reveals that the bookkeeper:
a. Recorded a $500 cash revenue transaction by debiting Accounts receivable. The credit entry was correct.
b. Posted a $1,000 credit to Accounts payable as $100.
c. Did not record utilities expense or the related account payable in the amount of $400.
d. Understated McDowell, capital by $600.
Requirement
1. Prepare the corrected trial balance at May 31, 2012, complete with a heading;
journal entries are not required.