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-   -   Correcting a trial balance (I cannot figure this out) (https://www.askmehelpdesk.com/showthread.php?t=332497)

  • Mar 22, 2009, 02:29 PM
    jdadawn07
    Correcting a trial balance (I cannot figure this out)
    Cash 5,850
    Accounts Receivable 2,750
    Prepaid Insurance 700
    Equipment 8,000
    Accounts Payable 4,500
    Property Taxes Payable 560
    M Sterling, Capital 11,700
    Service Revenue 6,690
    Salaries Expense 4,200
    Advertising Expense 1,100
    Property Tax Expense 800

    1. The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Property Tax Expense were each
    Understated $100
    2. Transposition errors were made in Accounts Receivable and Service Revenue. Based on posting made, the
    Correct balances were $2,570 and $6,960 respectively.
    3. A debit posting to Salaries Expense of $200 was omitted.
    4. A $1,000 cash drawing by the owner was debited to M. Sterling, Capital 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
    And credited to Cash for $45
    7. A collection from a customer for $210 was debited to Cash for $210 and credited to
    Accounts Payable for $210
  • Mar 22, 2009, 03:10 PM
    jdadawn07
    The first thing I did was add $100 to Dr. of accounts payable, prepaid insurance, and property tax expense. Was that correct?

    Then I changed the amounts to 2570 and 6960 of account receivable and service revenue respectfully. I moved service revenue to the credit side, was that correct?

    Next I debited owners drawings 1000 and credited M. Sterling, Capital 1000.

    I debited supplies 520 and credited accounts payable 520. I guess I subtract 520 from equipment on the debit side and subtract 520 from cash on the credit side.

    Next, I debited advertising expense for 405 and credited cash for 405.

    Finally, I debited cash for 210 and credited accounts receivable for 210.

    I need help determining what side everything goes on as well, please.
  • Mar 22, 2009, 04:01 PM
    pready

    First thing to do is set up a trial balance on Excel or use a 2 column paper.

    Assets & Expenses have a normal Debit Balance. Liabilities and capital accounts have a normal Credit Balance.

    1. Subtract 100 from A/P, Add 100 to both Prepaid Insurance and the Expense account.
    2. Change the amounts in the accounts.
    3. Add 200 to the Expense account.
    4. Add a Drawing account with 1000 Debit balance, and subtract 1000 from the Capital Account.
    5. Add a supplies account with 520 Debit balance, subtract 520 from the Eqpt Balance, add 520 to the Cash balance and add 520 to A/P account.
    6. Subtract 405 from the Cash Balance, add 405 to the Expense Account.
    7. subtract 210 from A/R and subtract 210 from A/P.
  • Mar 22, 2009, 04:50 PM
    jdadawn07

    Cash $5,965 amount
    Accounts Receivable 2,360 amount
    Prepaid Insurance 800 amount
    Equipment 7,480 amount
    Accounts Payable amount $4,710
    Property Taxes Payable amount $560
    M Sterling, Capital amount 10,700
    Service Revenue amount 6,960
    Salaries Expense 4,400 amount
    Advertising Expense 1,505 amount
    Property Tax Expense 900 amount
    M Sterling, Drawing 1,000 amount
    Supplies 520 amount

    I got a debit balance of $2000.
  • Mar 23, 2009, 06:28 PM
    pready
    1 Attachment(s)

    Your Debits and Credits should Equal 24,410

    See attached Excel file
  • Feb 2, 2011, 07:04 PM
    firelilly568
    Do you guys have the answer for this? The correct balance should be 24,930. I got the debit side to balance but not the credit side. Can you walk me through this? I included my numbers belows
    Trial Balance
    Account Name
    Cash 6,565 Dr
    Accounts Receivable 2,570 Dr
    Prepaid Insurance 800 Dr
    Supplies 520 Dr
    Equipment 7,480 Dr
    Accounts Payable 4,610 Cr
    Property Taxes Payable 560 Cr
    M Sterling, Capital 12,700 Cr
    M Sterling, Drawing 1,000 Dr
    Service Revenue 6,960 Cr
    Salaries Expense 4,400 Dr
    Advertising Expense 695 Dr
    Property Tax Expense 900 Dr
    Total 24,930 (Debit) 24,830 (Credit)
  • Feb 3, 2011, 01:35 PM
    pready

    This is a duplicate post and I posted a corrected explanation and a corrected Excel file in response to your other post in the Business & Careers Accounting thread.

    I guess when I worked on it before I did not have my coffee yet, or my Wheaties (lol).

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