Objective : Construct and use a trial balance.
The trial balance of Amanda's Candies, Inc., at September 30, 2014, does not balance:
|
Cash...............................
|
$ 14,200
|
|
|
Accounts receivable.............
|
12,800
|
|
|
Inventory.........................
|
17,300
|
|
|
Supplies...........................
|
400
|
|
|
Land...............................
|
41,000
|
|
|
Accounts payable................
|
|
$11,600
|
|
Common stock.............
|
|
47,100
|
|
Sales revenue....................
|
|
33,800
|
|
Salary expense..................
|
2,200
|
|
|
Rent expense....................
|
1,000
|
|
|
Utilities expense.................
|
1,000
|
|
|
Total...............................
|
$89,900
|
$92,500
|
The accounting records hold the following errors:
a. Recorded a $200 cash revenue transaction by debiting Accounts Receivable. The credit entry was correct.
b. Posted a $1,000 credit to Accounts Payable as $100.
c. Did not record utilities expense or the related account payable in the amount of $640.
d. Understated Common Stock by $200.
e. Omitted Insurance Expense of $3,700 from the trial balance.