P2-4B The trial balance of the Sean Devine Company shown below does not balance
ID: 2334780 • Letter: P
Question
P2-4B The trial balance of the Sean Devine Company shown below does not balance SEAN DEVINE COMPANY Trial Balance May 31, 2017 Debit Credit Cash Accounts Receivable Prepaid Insurance Equipment Accounts Pavable Unearned Service Revenue Owner's Capital Service Revenue Salaries and Wages Expense Advertising Expense Utilities Expense 5,850 2,750 700 8,000 650 6,690 4,500 11,700 4,200 1,100 890 $26,980$20,050 Your review of the ledger reveals that each account has a normal balance. You also discover the following errors 1. The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Utilities Expense were each understated $100 2. Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were $2,570 and $6,960, respectively 3. A debit posting to Salaries and Wages Expense of $200 was omitted. 4. A $1,000 cash drawing by the owner was debited to Owners Capita 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 cred ited to Cash for $520 6. A cash payment of $540 for advertising was debited to Advertising Expense for $54 and credited to Cash for $54. 7. A collection from a customer for $210 was debited to Cash for $210 and credited to Accounts Payable for $210 Instructions Prepare a correct trial balance. Note that the chart of accounts includes the following: Owner's Drawings and Supplies. (Hin: It helps to prepare the correct journal entry for the transaction described and compare to the mistake made.)Explanation / Answer
Debit Credi Cash 5884 Account Receivable 2360 Prepaid Insurance 800 Supplies 520 Equipment 7480 Account Payable 4710 Unearned Service Revenue 650 Owners Capital 11700 Service revenue 6960 Salaries and Wages 4400 Advertisment Expense 1586 Utilities Expense 990 24020 24020 Debit Credi Cash =5850-486+520 Account Receivable =2570-210 Prepaid Insurance =700+100 Supplies 520 Equipment =8000-520 Account Payable =4500-100-210+520 Unearned Service Revenue 650 Owners Capital 11700 Service revenue 6960 Salaries and Wages =4200+200 Advertisment Expense =1100+540-54 Utilities Expense =890+100 =SUM(C7:C18) =SUM(D7:D18)
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