Ask Me Help Desk - Trial balance- unbalnce

Quote:

Originally Posted by angel17

hey, can someone help with this trail balace? i really appreciate for the help.

Debit Credit
Cash $2,180
Accounts Receivable $3,370
Supplies 800
Equipment 3,000
Accounts Payable 2,666
Unearned Revenue 1,200
Common Stock 9,000
Dividends 800
Service Revenue 3,480
Salaries Expense 3,600
Office Expense 910
$13,680 $17,326

Each of the listed accounts has a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors:

One of the nice things about being designated as an Expert is that I can edit your post.

I didn't edit your post, but what I did do was click on edit to see your formatting for your trial balance.

From looking at it, I want to highlight the following that I see that you have done:
1) You gave CASH a CREDIT balance of 2,180
2) You gave UNEARNED REVENUE a DEBIT balance of 1,200

Since the above said that all accounts have a normal balance, that is incorrect since Cash is normally a debit balance and unearned revenue is normally a credit balance.

Therefore, after making those changes, the total debits and credits are: 14,660 and 16,346

Quote:

Originally Posted by angel17

1. Cash received from a customer on account was debited for $690, and Accounts Receivable was credited for the same amount. The actual collection was for $960.
i know i have to add 960-690= 270 in cash and subract 270 from AR.

Correct, you need to:
Dr. Cash 270
Cr. AR 270

Quote:

Originally Posted by angel17

2. The purchase of a printer on account for $340 was recorded as a debit to Supplies for$340 and a credit to Accounts Payable for $340.
here i would add 340 into equipment and subract 340 in supplies.

Correct, you need to:
Dr. Equipment 340
Cr. Supplies 340

Quote:

Originally Posted by angel17

3. Services were performed on account for a client for $800 Accounts Receivable was debited for $80 and Service Revenue was credited for $800
i think i would add 800-80=720 to AR.

Correct, you need to:
Dr. AR 720

Quote:

Originally Posted by angel17

4. A debit posting to Salaries Expense of $500 was omitted.
here i would add 500 to salaries expense

Correct, you need to:
Dr. Salaries Expense 500

Quote:

Originally Posted by angel17

5. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260
Here i would add 206+260= 466 to AP, right?

Wrong.

What was done:
Cr. AP 260
Cr. Cash 206

What should have been done:
Dr. AP 206
Cr. Cash 206

What needs to be done to fix it:
Dr. AP 206
Dr. AP 260

Or you can say Dr. AP 466

You would SUBTRACT 466 from AP

Quote:

Originally Posted by angel17

6. Payment of a $600 cash dividend to Izo's stockholders was debited to Salaries Expense for $600 and credited to Cash for $600
i do not know what to do here? i think add 600 to salaries expense and subtract 600 in cash?

What was done:
Dr. Salaries Expense 600
Cr. Cash 600

What should have been done:
Dr. Dividends 600
Cr. Cash 600

What needs to be done to fix this:
Dr. Dividends 600
Cr. Salaries Expense 600

What to do now?

Now, takes all the above corrections and apply them to the trial balance:

New trial balance:
Debits:
Cash 2,180 + 270 = 2,450
AR 3,370 – 270 + 720 = 3,820
Supplies 800 - 340 = 460
Equipment 3,000 + 340 = 3,340
Dividends 800 + 600 = 1,400
Salaries Expense 3,600 + 500 - 600 = 3,500
Office Expense 910

Total Debits = 15,880

Credits:
AP 2,666 - 466 = 2,200
Unearned Revenue 1,200
Common Stock 9,000
Service Revenue 3,480

Total Credits 15,880