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29 Sep 2019
The trial balance of Dominic Company shown below does notbalance.
DOMINIC COMPANY
Trial Balance
May 31, 2015
Debit
Credit
Cash
$5,840 Accounts Receivable $2,730 Prepaid Insurance 810 Equipment 13,990 Accounts Payable 6,490 Unearned Service Revenue 670 Common Stock 13,690 Service Revenue 8,670 Salaries and Wages Expense 4,310 Advertising Expense 990 Utilities Expense 800
$35,090
$23,900
Your review of the ledger reveals that each account has a normalbalance. You also discover the following errors.
1. The totals of the debit sides of Prepaid Insurance, AccountsPayable, and Utilities Expense were each understated $100. 2. Transposition errors were made in Accounts Receivable andService Revenue. Based on postings made, the correct balances were$2,370 and $8,760, respectively. 3. A debit posting to Salaries and Wages Expense of $200 wasomitted. 4. A $1,100 cash dividend was debited to Common Stock for $1,100and credited to Cash for $1,100. 5. A $460 purchase of supplies on account was debited to Equipmentfor $460 and credited to Cash for $460. 6. A cash payment of $490 for advertising was debited toAdvertising Expense for $49 and credited to Cash for $49. 7. A collection from a customer for $460 was debited to Cash for$460 and credited to Accounts Payable for $460.
Prepare a correct trial balance. (Hint: It helps toprepare the correct journal entry for the transaction described andcompare it to the mistake made.)
The trial balance of Dominic Company shown below does notbalance.
DOMINIC COMPANY | ||||
Debit | Credit | |||
Cash | $5,840 | |||
Accounts Receivable | $2,730 | |||
Prepaid Insurance | 810 | |||
Equipment | 13,990 | |||
Accounts Payable | 6,490 | |||
Unearned Service Revenue | 670 | |||
Common Stock | 13,690 | |||
Service Revenue | 8,670 | |||
Salaries and Wages Expense | 4,310 | |||
Advertising Expense | 990 | |||
Utilities Expense | 800 | |||
$35,090 | $23,900 |
Your review of the ledger reveals that each account has a normalbalance. You also discover the following errors.
1. | The totals of the debit sides of Prepaid Insurance, AccountsPayable, and Utilities Expense were each understated $100. | |
2. | Transposition errors were made in Accounts Receivable andService Revenue. Based on postings made, the correct balances were$2,370 and $8,760, respectively. | |
3. | A debit posting to Salaries and Wages Expense of $200 wasomitted. | |
4. | A $1,100 cash dividend was debited to Common Stock for $1,100and credited to Cash for $1,100. | |
5. | A $460 purchase of supplies on account was debited to Equipmentfor $460 and credited to Cash for $460. | |
6. | A cash payment of $490 for advertising was debited toAdvertising Expense for $49 and credited to Cash for $49. | |
7. | A collection from a customer for $460 was debited to Cash for$460 and credited to Accounts Payable for $460. |
Prepare a correct trial balance. (Hint: It helps toprepare the correct journal entry for the transaction described andcompare it to the mistake made.)
Bunny GreenfelderLv2
29 Sep 2019