Wilm Schmidt, the owner of Wilm\'s Window Washing Services, had difficulty getti

Question

Wilm Schmidt, the owner of Wilm's Window Washing Services, had difficulty getting the debits to equal credits on the January 31, 2017, trial balance Wilm's Window Washing Services Trial Balance January 31, 2017 Debit Credit Cash Accounts receivable Prepaid insurance Equipment Accounts payable Wilm Schmidt, capital Wilm Schmidt, withdrawals Service revenues Salaries expense Insurance expense Maintenance expense Utilities expense 5 13,200 10.840 4,000 40.000 5 11,000 61.000 10,560 37.300 33,600 6,800 14,600 6.800 Total 5 140.400 5139,300 The following errors were discovered a. Schmidt did not post a $3,500 purchase of equipment on credit. b. In posting a $2,200 collection from a credit customer, Schmidt debited Accounts Receivable and credited Cash c. In posting a cash receipt, Schmidt correctly debited Cash for $2,550 but incorrectly credited Accounts Receivable for $5,250 d. In posting a $3,800 payment on account, Schmidt debited Accounts Payable but forgot to post the credit to Cash e. In posting the entry for services of S3,400 performed for a customer on credit, Schmidt debited Accounts Receivable but credited Maintenance Expense Required: Prepare a corrected trial balance WILM'S WINDOW WA SHING SERVICES Trial Balance January 31, 2017 Account Titles Debit Credit

Explanation / Answer

TRIAL BALANCE Account titles Debit Credit Cash = 13200-3800+4400 = 13800 Accounts receivables =10840-4400+5250-2550 = 9140 Prepaid insurance 4000 Equipment = 40000+3500 = 43500 Accounts payable = 11000+3500 = 14500 Wilm Schimdt, capital 61000 Wilm Schimdt, withdrawals 10560 Service revenues = 67300+3400 = 70700 Salaries expense 33600 Insurance expense 6800 Maintenance expense = 14600+3400 = 18000 Utilities expense 6800 Total 146200 146200

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