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LuwaMutoji
Aug 6, 2013, 04:58 AM
I am working on a corrected trial balance for school and am having trouble getting it to work out. Here is the set up and what I have for starting balances:

Cash - Dr 2870
Accounts Receivable - Dr 3231
Supplies - Dr 800
Equipment - Dr 3800
Accounts Payable - Cr 2666
Unearned Service Revenue - Cr 1200
Common Stock - Cr 6000
Retained Earnings - Cr 3000
Service Revenue - Cr 2380
Wages Expense - Dr 3400
Office Expense - Dr 940

This leaves us with a debit balance of $15041 and a credit balance of $15246

So, here are the errors and what are my thoughts to do with them:

Cash received from a customer on account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750.
My thoughts were to Dr. Cash 180 and Cr Accounts Receivable 180

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.
My thoughts were to Dr. Equipment 500 and Cr Supplies 500

Services were performed on account for a client for $890. Accounts Receivable was debited for $890 and Service Revenue was credited for $89
My thoughts were to Cr Service Revenue 801

A payment of $65 for telephone charges was recorded as a debit to Office Expense for $65 and a debit to Cash for $65.
My thoughts were to Cr Cash 130

When the Unearned Revenue Service Revenue account was reviewed, it was found that 325 of the balance was earned prior to June 30.
My thought was to Cr Unearned Service Revenue for 325 but I feel there is another account that I should be doing something to.

A debit posting to Wages Expense of $670 was omitted.
My thought was to Dr. Wages Expense 670

A payment on account for $206 was credited to cash for 206 and credited to accounts payable for $260.
My thought was to Dr. Accounts Payable 466

A dividend of 575 was debited to Wages Expense for 575 and credited to cash for 575
My thought was to Cr Wages Expense 575, make a new account and Dr. Dividend 575

I am having some balancing issues

After the correction

Thank you!
Cash 2820.00
Account Receivable 3411.00
Supplies 1300.00
Equipment 3300.00
Account Payable 2200.00
Unearned Service Revenue 875.00
Common Stock 6000.00
Dividend 575.00
Retained Earnings 3000.00
Service Revenue 3181.00
Wages Expense 3305.00
Office Expense 940.00 .

pready
Aug 7, 2013, 10:07 AM
Most of your corrections are correct. Your Unearned Service Revenue that was earned of $325 you should credit $325 to Service Revenue.

The main problem is with your balances. You either added to an account when you should have subtracted from the account, or you subtracted from an account when you should have added.

Accounts with a normal debit balance will be increased by a debit and decreased by a credit, while accounts with a normal credit balance will be increased by credit and decreased by a debit.

Here is a guide to help you remember which accounts have a normal debit or credit balance:

D - Debit balance
E - Expenses
A - Assets
D - dividends

C - Credit balance
U - Unearned Revenue
R - Revenue
L - Liabilities
S - Stockholders Equity/Owners Equity

pready
Aug 7, 2013, 11:55 AM
Your debits and credits after the corrections should equal 15,581

Nnenna18
Feb 10, 2016, 02:04 PM
Why did you credit supplies for $500.00?