[AprilO]

The trial balance of Red House Painters shown below does not balance.
RED HOUSE PAINTERS
Trial Balance
June 30, 2012
———————————————————————————————————————————
Debit Credit
Cash $ 2,780
Accounts Receivable 7,420
Supplies 600
Equipment 8,300
Accounts Payable $ 9,777
Owner’s Capital 1,952
Owner’s Drawings 1,300
Service Revenue 15,200
Salaries and Wages Expense 3,800
Repair Expense 1,600
Totals $25,800 $26,929

An examination of the ledger and journal reveals the following errors:
1. Each of the above listed accounts has a normal balance per the general ledger.
2. Cash of $270 received from a customer on account was debited to Cash $720 and credited to Accounts Receivable $720.
3. A withdrawal of $400 by the owner was posted as a credit to Owner’s Drawings, $400 and credit to Cash $400.
4. A debit of $300 was not posted to Salaries and Wages Expense.
5. The purchase of equipment on account for $700 was recorded as a debit to Repair Expense and a credit to Accounts Payable for $700.
6. Services were performed on account for a customer, $510, for which Accounts Receivable was debited $510 and Service Revenue was credited $51.
7. A payment on account for $235 was credited to Cash for $235 and credited to Accounts Payable for $253.

Instructions
Prepare a correct trial balance.



I've tried this multiple times and I'm not sure what I am doing wrong. Can anyone please help me? I'm desperate! I've spent at least and hour going over this...

My idea was to:
1) Credit cash $450 (the difference between the real amount and posted amount) and Debit Acc. Receivable $450.
2) Debit Owner's Drawings $800 (To take away the credit of 400 and then add the proper 400).
3) Debit Salaries&Wages the $300 that was not posted.
4) Credit Equipment $700, Credit $700 to repair expense.
5) Credit service revenue $459 (the difference between the real amount and the posted amount)
6) Debit 253 + 235 to Accounts Payable to make up for the mistake there...

[ArcSine]

Just note that in your adjustment (4), Equipment should be debited rather than credited. Make that little tweak and your adjusted trial balance will be fine.