Errors in trial balance
The following preliminary unadjusted trial balance of Ranger Co., a sports ticket agency, does not balance:
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Ranger Co. Unadjusted Trial Balance August 31, 2014 |
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Debit Balance |
Credit Balance |
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Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
77,600 |
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Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
37,750 |
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Prepaid Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
12,000 |
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Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
19,000 |
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Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
29,100 |
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Unearned Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
10,800 |
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Capital Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
40,000 |
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Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
70,000 |
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Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
13,000 |
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Service Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
385,000 |
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Wages Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
213,000 |
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Advertising Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
16,350 |
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Miscellaneous Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
18400 |
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273,700 |
668,300 |
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When the ledger and other records are reviewed, you discover the following:
1) the debits and credits in the cash account total $77,600 and $62,100, respectively;
2) a billing of $9,000 to a customer on account was not posted to the accounts receivable account;
3) a payment of $4,500 made to a creditor on account was not posted to the accounts payable account;
4) the balance of the unearned rent account is $5,400;
5) the correct balance of the equipment account is $190,000;
6) each account has a normal balance.
Prepare a corrected unadjusted trial balance.