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From this information prepare a corrected trial balance. E3.4 (LO 2) (Corrected Trial Balance) The following trial balance of Watteau Co. does not balance. Watteau Co. Trial Balance June 30, 2020 Debit Credit Cash $ 2,870 Accounts Receivable $ 3,231 Supplies 800

From this information prepare a corrected trial balance. E3.4 (LO 2) (Corrected Trial Balance) The following trial balance of Watteau Co. does not balance. Watteau Co. Trial Balance June 30, 2020 Debit Credit Cash $ 2,870 Accounts Receivable $ 3,231 Supplies 800

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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From this information prepare a corrected trial balance. E3.4 (LO 2) (Corrected Trial Balance) The following trial balance of Watteau Co. does not balance. Watteau Co. Trial Balance June 30, 2020 Debit Credit Cash $ 2,870 Accounts Receivable $ 3,231 Supplies 800
Transcribed Image Text:From this information prepare a corrected trial balance. E3.4 (LO 2) (Corrected Trial Balance) The following trial balance of Watteau Co. does not balance. Watteau Co. Trial Balance June 30, 2020 Debit Credit Cash $ 2,870 Accounts Receivable $ 3,231 Supplies 800
59% My Messages Accounts Payable $ 2,666 Unearned Service Revenue 1,200 6,000 Common Stock Retained Earnings 3,000 2,380 Service Revenue Salaries and Wages Expense Office Expense 3,400 940 $16,916 $13,371 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 $570, and Accounts Receivable was cred- ited for the same amount. The actual collection was for $750. 2. The purchase of a computer printer on account for $500 was recorded as a debit to Supplies for $500 and a credit to Accounts Payable for $500. 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 $65 for telephone charges was recorded as a debit to Office Expense for $65 and a debit to Cash for $65. 5. When the Unearned Service Revenue account was reviewed, it was found that service revenué amounting to $325 was performed prior to June 30 (related to Unearned Service Revenue). 6. A debit posting to Salaries and Wages Expense of $670 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 $575 was debited to Salaries and Wages Expense for $575 and credited to Cash for $575. Instruction Prepare a correct trial balance. (Note: It may be necessary to add one or more accounts to the trial balance.) The ledger of Duggan Rental Agency on March 31 of the E3.5 (LO 3) Excel current year includes the following selected accounts before adjusting entries have been prepared. (Adjusting Entries) Credit Debit $ 3,600 Prepaid Insurance Supplies Equipment 2,800 25,000 400 Fauinment Accumulated Donociation
Transcribed Image Text:59% My Messages Accounts Payable $ 2,666 Unearned Service Revenue 1,200 6,000 Common Stock Retained Earnings 3,000 2,380 Service Revenue Salaries and Wages Expense Office Expense 3,400 940 $16,916 $13,371 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 $570, and Accounts Receivable was cred- ited for the same amount. The actual collection was for $750. 2. The purchase of a computer printer on account for $500 was recorded as a debit to Supplies for $500 and a credit to Accounts Payable for $500. 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 $65 for telephone charges was recorded as a debit to Office Expense for $65 and a debit to Cash for $65. 5. When the Unearned Service Revenue account was reviewed, it was found that service revenué amounting to $325 was performed prior to June 30 (related to Unearned Service Revenue). 6. A debit posting to Salaries and Wages Expense of $670 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 $575 was debited to Salaries and Wages Expense for $575 and credited to Cash for $575. Instruction Prepare a correct trial balance. (Note: It may be necessary to add one or more accounts to the trial balance.) The ledger of Duggan Rental Agency on March 31 of the E3.5 (LO 3) Excel current year includes the following selected accounts before adjusting entries have been prepared. (Adjusting Entries) Credit Debit $ 3,600 Prepaid Insurance Supplies Equipment 2,800 25,000 400 Fauinment Accumulated Donociation
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