Problem - 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
|
|
|
|
$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 S65 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 was 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.
Instructions - Prepare a correct trial balance. (Note: It may be necessary to add one or more accounts to the trial balance.)