Correcting errors in a trial balance
The trial balance of Smart Tots Child Care does not balance.
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SMART TOTS CHILD CARE Trial Balance 31-Aug-12 |
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|
Account |
Debit |
Credit |
|
Cash |
$ 6,700 |
|
|
Accounts receivable |
7,000 |
|
|
Supplies |
700 |
|
|
Equipment |
87,000 |
|
|
Accounts payable |
53,000 |
|
|
Tilley, capital |
50,500 |
|
|
Tilley, drawing |
2,400 |
|
|
Service revenue |
4,700 |
|
|
Salary expense |
3,600 |
|
|
Rent expense |
500 |
|
|
Total |
$107,900 |
$108,200 |
The following errors are detected:
a. Cash is understated by $1,000.
b. A $4,000 debit to Accounts receivable was posted as a credit.
c. A $1,000 purchase of supplies on account was neither journalized nor posted.
d. Equipment”s cost is $78,500, not $87,000.
e. Salary expense is overstated by $200.
Requirement
1. Prepare the corrected trial balance at August 31, 2012. Journal entries are not required.