Question 6) This trial balance of Schmitz Co. does not balance. Schmitz Co. Trai

Question

Question 6) This trial balance of Schmitz Co. does not balance. Schmitz Co. Trail Balance October 31,2018 Debit Credit $ 4,398 Cash Accounts Receivable Supplies Equipment Accounts Payable Unearned Service Revenue Common Stock Dividends Service Revenue Salaries Expense Utilities Expense S 4,390 900 9,000 5,686 1,200 12,060 so8 1,487 3,600 $22.476 $29,631 Each of the listed accounts has a normal balance per the general ledger. An examination of the led journal reveals the following errors: ger and 1. Cash received from a customer on account was credited to Cash for $878, and Accounts Receivable was credited for the same amount. The actual collection was for $787 2. The purchase of Supplies on account for $43 1 was recorded as a debit to Equipment for $48 and a credit to Accounts Receivable for $431 3. Services were performed on account for a client for $999. Accounts receivables were debited for $999 and Service Revenue was debited for $99, 4. A credit posting to Accounts Receivable of $515 was omitted. 5. A payment on account for $306 was credited to Cash for $306 and credited to Accounts Payable for $360. 6. Payment of a $681 cash dividend to Schmitz's stockholders was debited to Common Stock for $681 and credited to Dividends for $681. Instructions: Prepare the correct trial balance. (Hint: All accounts have normal balances)

Explanation / Answer

Solution:

Schmitz Co Corrected Trial Balance 31-Oct-18 Accounts title Debit Credit Cash ($4,398 + $878 + $787 - $681) $5,382.00 Accounts receivables ($4,390 + $878 - $787 + $431 - $515) $4,397.00 Supplies ($900 + $431) $1,331.00 Equipment ($9,000 - $481) $8,519.00 Accounts payable ($5,686 + $431 - $360 - $306) $5,451.00 Unearned service revenue $1,200.00 Common stock ($12,060 + $681) $12,741.00 Dividends ($808 + $681 + 681) $2,170.00 Service Revenue ($7,487 + $999 +$99) $8,585.00 Salaries Expense $3,600.00 Utilities Expense $2,578.00 Total $27,977.00 $27,977.00

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.