E3-4 (Corrected Trial Balance) The following trial balance of Oakley Co. does not balance.
Oakley Co.
Trial Balance
June 30, 2012

Debit Credit
Cash $2,870
Accounts Receivable $3,231
Supplies 800
Equipment 3,800
Accounts Payable 2,666
Unearned Service Revenue 1,200 
Common Stock 6,000
Retained Earnings 3,000
Service Revenue 2,380
Salaries and Wages Expense 3,400 
Office Expense 940

Total $13,371 $16,916

Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.

1. Cash received from a customer on account was debited for $370, and Accounts Receivable was credited for the same amount. The actual collection was for $730.

2. The purchase of a computer printer on account for $500 was recorded as a debit to Supplies for $500 and a credit to Accounts Payable for $500.

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 payment of $65 for telephone charges was recorded as a debit to Office Expense for $65 and a debit to Cash for $65.

5. When the Unearned Service Revenue account 2was reviewed, it was found that $225 of the balance was earned prior to June 30.

6. A debit posting to Salaries and Wages Expense of $670 was omitted.

7. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260.

8. A dividend of $575 was debited to Salaries and Wages Expense for $575 and credited to Cash for $575.





AFTER PAYMENT ENTER PASSWORD : "SHIV" TO UNLOCK THE SOLUTION

Comments

Popular posts from this blog

You are given a choice of taking the simple interest on 100,000 invested for 2 years

Complete the spreadsheet template following Steps 1–10, building a comprehensive workbook of data and analyses that will inform your conclusions