Correcting errors in a trial balance
The trial balance for Treasure Hunt Exploration Company does not balance.
|
TREASURE HUNT EXPLORATION COMPANY Trial Balance 29-Feb-12 |
||
|
Account |
Debit |
Credit |
|
Cash |
$ 6,300 |
|
|
Accounts receivable |
6,000 |
|
|
Supplies |
400 |
|
|
Exploration equipment |
22,300 |
|
|
Computers |
49,000 |
|
|
Accounts payable |
2,800 |
|
|
Note payable |
18,500 |
|
|
Jones, capital |
50,000 |
|
|
Jones, drawing |
4,000 |
|
|
Service revenue |
4,100 |
|
|
Salary expense |
$1,400 |
|
|
Rent expense |
800 |
|
|
Advertising expense |
900 |
|
|
Utilities expense |
800 |
|
|
Total |
$91,900 |
$75,400 |
The following errors were detected:
a. The cash balance is overstated by $5,000.
b. Rent expense of $340 was erroneously posted as a credit rather than a debit.
c. A $6,800 credit to Service revenue was not posted.
d. A $400 debit to Accounts receivable was posted as $40.
e. The balance of Utilities expense is understated by $70.
f. $900 purchase of supplies on account was neither journalized nor posted.
g. Exploration equipment should be $16,490.
Requirement
1. Prepare the corrected trial balance at February 29, 2012. Journal entries are not required.