Instructions
From this information prepare a corrected trial balance.

E3-4
(Corrected Trial Balance) The trial balance of Oakley Co. does not balance.


OAKLEY CO.
TRIAL BALANCE
JUNE 30, 2010

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
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 $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 was reviewed, it was found that $225 of the balance was earned prior to June 30.

6.
A debit posting to 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 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.)

I wish I could help you if you had posted your answer to the errors. However, as a guidance, please recheck the trial balance totals.

Find out the revised difference in the trial balance and enter it as a suspense account.

Now analyse each adjustment and make necessary corrections.

How do I correct this trail balance?

The best thing to do is set-up a trial balance in Excel and enter the accounts with their correct normal balances as your starting point, then go from there.

I have attached a trial balance, so you will know what one looks like.

In your opinion, which location is the better location for reporting case on th balance sheet and why did you select that location.

This is a discussion question:
In your opinion, which location is the better location for reporting case on the balance sheet and why did you select that location?