LOVE TO LEARN CHILD CARE Trial Balance May 31, 2018 Balance Account Title Debit Credit Cash $ 8,060 Accounts Receivable 8,700 Office Supplies 1,000 Prepaid Insurance 1,700 Equipment 90,400 Accounts Payable 2$ $ 3,000 Notes Payable 45,000 Common Stock 54,000 Dividends 3,740 Service Revenue 16,300 Salaries Expense 4,350 Rent Expense 400 Total $ 118,350 $ 118,300
Correcting errors in a
The trial balance of Love to Learn Child Care does not balance.
The following errors are detected:
a. Cash is understated by $1,800.
b. A $3,800 debit to
c. A $1,000 purchase of office supplies on account was neither journalized nor posted.
d. Equipment was incorrectly transferred from the ledger as $90,400. It should have been transferred as $82,500.
e. Salaries Expense is overstated by $350.
f. A $300 cash payment for advertising expense was neither journalized nor posted.
g. A $160 cash dividend was incorrectly journalized as $1,600.
h. Service Revenue was understated by $4,000.
i. A 12-month insurance policy was posted as a $1,400 credit to Prepaid Insurance. Cash was posted correctly.
Prepare the corrected trial balance as of May 31, 2018.journal entries are not required.
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