(Learning Objective 5: Correct errors and prepare a trial balance) The trial balance of Addison, Inc., at September 30, 2018, does not balance:Cash...................................... $ 14,10012,70016,90080059,0002,0001,000300$106,800Accounts receivable...............Inventory...............................Supplies.................................Land......................................Accounts payable ..................Common stock......................Sales revenue .........................Salary expense.......................Rent expense .........................Utilities expense ....................Total .....................................$12,30047,10049,700$109,100The accounting records hold the following errors:a. Recorded a $700 cash revenue transaction by debiting Accounts Receivable. The creditentry was correct.b. Posted a $1,000 credit to Accounts Payable as $100.c. Did not record utilities expense or the related account payable in the amount of $400.d. Understated Common Stock by $200.e. Omitted Insurance Expense of $3,400 from the trial balance.Requirement1. Prepare the corrected trial balance at September 30, 2018, complete with a heading. Journal entries are not required.
(Learning Objective 5: Correct errors and prepare a
Cash...................................... $ 14,100
12,700
16,900
800
59,000
2,000
1,000
300
$106,800
Inventory...............................
Supplies.................................
Land......................................
Accounts payable ..................
Common stock......................
Sales revenue .........................
Salary expense.......................
Rent expense .........................
Utilities expense ....................
Total .....................................
$12,300
47,100
49,700
$109,100
The accounting records hold the following errors:
a. Recorded a $700 cash revenue transaction by debiting Accounts Receivable. The credit
entry was correct.
b. Posted a $1,000 credit to Accounts Payable as $100.
c. Did not record utilities expense or the related account payable in the amount of $400.
d. Understated Common Stock by $200.
e. Omitted Insurance Expense of $3,400 from the trial balance.
Requirement
1. Prepare the corrected trial balance at September 30, 2018, complete with a heading.
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