The trial balance of Syed Moiz Co. shown below does not balance.
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SYED MOIZ CO. Trial Balance June 30, 2011 |
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Debit |
Credit |
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|
Cash |
$ 3,340 |
|
|
Accounts Receivable |
$ 2,731 |
|
|
Supplies |
1,200 |
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|
Equipment |
2,600 |
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|
Accounts Payable |
3,666 |
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|
Unearned Revenue |
1,100 |
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|
Common Stock |
8,000 |
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|
Dividends |
800 |
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|
Service Revenue |
2,480 |
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|
Salaries Expense |
3,200 |
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|
Office Expense |
810 |
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|
$12,441 |
$17,486 |
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 in payment of its account was debited for $480, and Accounts Receivable was credited for the same amount.The actual collection was for $840.
2. The purchase of a computer on account for $620 was recorded as a debit to Supplies for $620 and a credit to Accounts Payable for $620.
3. Services were performed on account for a client for $890. Accounts Receivable was debited for $890, and Service Revenue was credited for $89.
4. A debit posting to Salaries Expense of $700 was omitted.
5. A payment of a balance due for $306 was credited to Cash for $306 and credited to Accounts Payable for $360.
6. The payment of a $600 cash dividend was debited to Salaries Expense for $600 and credited to Cash for $600.
Instructions
Prepare a correct trial balance. (Hint: It helps to prepare the correct journal entry for the transaction described and compare it to the mistake made.)