The following preliminary unadjusted trial balance of Awesome Co., a sports ticket agency, does not balance:
|
Awesome Co. Unadjusted Trial Balance December 31, 2008 |
||
|
Debit |
Credit |
|
|
Balances |
Balances |
|
|
Cash |
94,700 |
|
|
Accounts Receivable |
44,200 |
|
|
Prepaid Insurance |
|
16,000 |
|
Equipment |
15,000 |
|
|
Accounts Payable |
|
25,960 |
|
Unearned Rent |
|
5,800 |
|
Sean Milner, Capital |
164,840 |
|
|
Sean Milner, Drawing |
20,000 |
|
|
Service Revenue |
|
167,500 |
|
Wages Expense |
|
84,000 |
|
Advertising Expense |
14,400 |
|
|
Miscellaneous Expense |
|
2,850 |
|
353,140 |
302,110 |
|
When the ledger and other records are reviewed, you discover the following: (1) the debits and credits in the cash account total $94,700 and $67,950, respectively; (2) a billing of $5,000 to a customer on account was not posted to the accounts receivable account; (3) a payment of $3,600 made to a creditor on account was not posted to the accounts payable account; (4) the balance of the unearned rent account is $8,500; (5) the correct balance of the equipment account is $150,000; and (6) each account has a normal balance. Prepare a corrected unadjusted trial balance.