[missdee38]

cash-19,000(debit)
accounts receivable-34,100(debit)
supplies-4,464(debit)
prepaid insurance-4,800(debit)
equipment-108,000(debit)
notes payable-45,000(credit)
accounts payable-9,650(credit)
capital stock-40,000(credit)
retained earnings-29,400(credit)
dividends-23,500(debit)
fees earned-356,000(credit)
wages expense-204,000(debit)
rent expense-41,700(debit)
advertising expense-19,800(debit)
gas,electricity, and water expense-11,340(debit)
Debit Balances = $470,704 Credit Balances = $480,050
The debit and credit totals are not equal as a result of the following errors:
a) the balance of cash was overstated by $10,000
b) a cash receipt of $6,100 was posted as a debit to cash of $1,600
c) a debit of $3,500 to accounts receivable was not posted
d) a return of $415 of defective supplies was erroneously posted as a $451 credit to supplies
e) an insurance policy acquired at a cost of $800 was posted as a credit to prepaid insurance
f) the balance of notes payable was overstated by $9,000
g) a credit of $1,450 in accounts payable was overlooked when the balance of the account was determined
h) a debit of $2,500 for dividends was posted as a debit to capital stock
I) the balance of $18,900 in advertising expense was entered as $19,800 in the trial balance
j) miscellaneous expense, with a balance of $3,060, was omitted from the trial balance

INSTRUCTIONS:
prepare a corrected unadjusted trial balance

does the fact that the unadjusted trial balance in (1) is balanced mean that there are no errors in the accounts? Explain.

[morgaine300]

A hint on that last question. If you had a $1000 receivable and you posted it to cash instead, would the debit total still be the same?

As for the entire problem, I can only give you some hints to just get you started. Each item will have to be handled in a different manner. Do not worry about "making entries" and making sure they balance - that isn't what you're doing. You're correcting mistakes - given they're mistakes, it could take anything to correct them.

You need to look at each item one at a time. Some of them will be fairly simple, others harder to think about. The first one is one of the easier ones - if cash was overstated, what do you need to do to correct that? (Again, don't do an entry - just correct the account.)

Sometimes something goes to the wrong place. You may have to figure out for yourself what's in the wrong place. Then remove it from the wrong place. Then put it into the correct place. Be careful... if, say, an asset was credited when it shouldn't have been, that subtracts from that account. To "remove" that mistake, you have to add it back in.

Other times an entire entry is wrong, so you have two things to un-do and two new things to put in.

At least take a crack at it and see what you can come up with. We can check it over for you. It does help if you can find a way to show your work, either by telling us what you did for each one, or showing the math in each account, etc.

[missdee38]

Thanks a lot, I got the prob done. I read each line carefully, and fixed the errors. I got them right. Now I know how to correct errors in an Unadjusted Trial Balance. :-)

[morgaine300]

You're welcome - good job getting it first time around. :-)