Correcting errors in a trial balance
The trial balance of Building Blocks Child Care does not balance.
|
BUILDING BLOCKS CHILD CARE Trial Balance 31-May-12 |
||
|
Account |
Debit |
Credit |
|
Cash |
$ 6,300 |
|
|
Accounts receivable |
3,000 |
|
|
Supplies |
700 |
|
|
Equipment |
88,000 |
|
|
Accounts payable |
57,000 |
|
|
Estella, capital |
50,400 |
|
|
Estella, drawing |
2,600 |
|
|
Service revenue |
4,700 |
|
|
Salary expense |
3,200 |
|
|
Rent expense |
700 |
|
|
Total |
$104,500 |
$112,100 |
The following errors are detected:
a. Cash is understated by $4,000.
b. A $2,000 debit to Accounts receivable was posted as a credit.
c. A $1,200 purchase of supplies on account was neither journalized nor posted.
d. Equipment”s cost is $87,700, not $88,000.
e. Salary expense is overstated by $100.
Requirement
1. Prepare the corrected trial balance at May 31, 2012. Journal entries are not required.