Question 1 The following trial balance of Swifty Traveler Corporation does not b

ID: 2337289 • Letter: Q

Question

Question 1 The following trial balance of Swifty Traveler Corporation does not balance SWIFTY TRAVELER CORPORATION TRIAL BALANCE APRIL 30, 2017 Debit $7,130 5,660 3,387 6,520 Credit Cash Accounts Receivable Supplies Equipment Accounts Payable Common Stock Retained Earnings Service Revenue Office Expense $7,464 8,420 2,420 5,620 4,740 $27,437 $23,924 An examination of the ledger sh ows these errors. 1. Cash received from a customer on account was recorded (both debit and credit) as $1,380 instead of $1,830 2. The purchase on account of a computer costing $3,115 was recorded as a debit to Office Expense and a credit to Accounts Payable 3. Services were performed on account for a client, $2,670, for which Accounts Receivable was debited $2,670 and Service Revenue was credited $267 4. A payment of $515 for telephone charges was entered as a debit to Office Expense and a debit to Cash 5. The Service Revenue account was totaled at $5,620 instead of 5,700 From this information prepare a corrected trial balance SWIFTY TRAVELER CORPORATION TRIAL BALANCE APRIL 30, 2017 Debit Credit

Explanation / Answer

(Amounts in $)

SWIFTY TRAVELER CORPORATION

TRIAL BALANCE

APRIL 30, 2017

Particulars

Debit

Credit

Cash

6,550

Accounts receivable

5,210

Supplies

3,387

Equipment

6,520

Computer

3,115

Accounts Payable

7,464

Common stock

8,420

Retained earnings

2,420

Service Revenue

8,103

Office expenses

1,625

Total

26,407