[Rekha68]

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.)

[rehmanvohra]

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.

[channonLee]

How do I correct this trail balance?

[pready]

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.

[channonLee]

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

[channonLee]

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?