Question

The following trial balance was prepared from the ledgeraccounts of Sanchez Company

Account Title

Debit

Credit

 

 

 

Cash

68,900

 

Accounts Receivable

30,000

 

Supplies

1,800

 

Prepaid Insurance

3,600

 

Land

 

12,000

Accounts Payable

 

9,600

Common Stock

 

100,000

Retained Earnings

 

27,510

Dividends

8,000

 

Service Revenue

 

60,000

Rent Expense

9,600

 

Salaries Expense

31,500

 

Operating Expenses

32,400

 

 

 

 

TOTALS

$185,800

$209, 110

When the trial balance failed to balance, the accountantreviewed the records and discovered the following errors:

1. The company received $560 as payemnt for services rendered.The credit to Service Revenue was recorded correctly, but the debitto Cash was recorded as $650.

2. A $900 receipt of cash that was received from a customer onaccounts receivable was not recorded.

3. A $600 purchase of supplies on account was properly recordedas a debit to the Supplies account. However, the credit to AccountsPayable was not recorded.

4. Land valued at $12,000 was contributed to the business inexchange for common stock. The entry to record the transaction wasrecorded as a $12,000 credit to both the Land account and theCommon Stock account.

5. A $500 rent payment was properly recorded as a credit toCash. However, the Salaries Expense account was incorrectly debitedfor $500

REQUIRED: Based on this information, prepare acorrected trial balance for Sanchez Comapny

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