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Prepare a correct trial balance.




The trial balance of the Garland Company shown below does not balance.;Garland Company;Trial Balance;May 31, 2014;Debit;Credit;Cash;$3,850;Accounts Receivable $2,750;Prepaid Insurance 700;Equipment 12,000;Accounts Payable 4,500;Unearned Service Revenue 560;Common Stock 11,700;Service Revenue 8,690;Salaries and Wages Expense 4,200;Advertising Expense 1,100;Utilities Expense;800;$30,800;$20,050;Your review of the ledger reveals that each account has a normal balance. You also discover the following errors.;1. The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Utilities Expense were each understated $100.;2. Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were $2,570 and $8,960, respectively.;3. A debit posting to Salaries and Wages Expense of $200 was omitted.;4. A $1,000 cash dividend was debited to Common Stock for $1,000 and credited to Cash for $1,000.;5. A $520 purchase of supplies on account was debited to Equipment for $520 and credited to Cash for $520.;6. A cash payment of $450 for advertising was debited to Advertising Expense for $45 and credited to Cash for $45.;7. A collection from a customer for $420 was debited to Cash for $420 and credited to Accounts Payable for $420.;Prepare a correct trial balance. (Hint: It helps to prepare the correct journal entry for the transaction described and compare it to the mistake made.)


Paper#23846 | Written in 18-Jul-2015

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