The following trial balance of Oakley Co. does not balance. OAKLEY CO. TRIAL BAL

Question

The following trial balance of Oakley Co. does not balance.
OAKLEY CO.
TRIAL BALANCE
JUNE 30, 2012

Cash-credit $2,980
Accounts Receivable- debit $3,341
Supplies-debit 910
Equipment-debit 3,910
Accounts Payable-credit 2,776
Unearned Service Revenue -debit 1,310
Common Stock-credit 6,110
Retained Earnings-credit 3,110
Service Revenue-credit 2,490
Salaries and Wages Expense-debit 3,510
Office Expense - debit 1,050

Total debit: $14,031
Total credit: $17,466

Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.
1. Cash received from a customer on account was debited for $370, and Accounts Receivable was credited for the same amount. The actual collection was for $730.
2. The purchase of a computer printer on account for $610 was recorded as a debit to Supplies for $610 and a credit to Accounts Payable for $610.
3. Services were performed on account for a client for $890. Accounts Receivable was debited for $890 and Service Revenue was credited for $89.
4. A payment of $175 for telephone charges was recorded as a debit to Office Expense for $175 and a debit to Cash for $175.
5. When the Unearned Service Revenue account was reviewed, it was found that $335 of the balance was earned prior to June 30.
6. A debit posting to Salaries and Wages Expense of $780 was omitted.
7. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260.
8. A dividend of $685 was debited to Salaries and Wages Expense for $685 and credited to Cash for $685.

Prepare a correct trial balance. (Note: It may be necessary to add one or more accounts to the trial balance.)

Explanation / Answer

OAKLEY CO. Trial Balance June 30, 2010

Cash ($2,870 + $180 - $65 -$65)= $2,920

Accounts Receivable ($3,231 - $180) =3,051

Supplies ($800 - $513) =287

Equipment ($3,800 + $513) =4,313

Accounts Payable ($2,666 - $206 - $260)= $2,200

Unearned Service Revenue ($1,200 - $325)= 875

Common Stock Dividends Retained Earnings Service Revenue ($2,380 + $801 +$325) =6,000

Wages Expense ($3,400 + $670 - $1,066)= 1,066

Credit = $15,581

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