P2-4A The trial balance of Dominic Company shown below does not balance. DOMINIC COMPANY Trial Balance May 31, 2015 Cash Accounts Receivable Prepaid Insurance Equipment Accounts Payable Unearned Service Revenue Common Stock Debit $ 3,850 700 12,000 560 Service Revenue 8,690 Salaries and Wages Expense 4,200 Advertising Expense Utilities Expense 800 $30,800 Credit $ 2,750 4,500 11,700 1,100 $20,050 Your review of the ledger reveals that each account has a normal balance. You also discover the following errors. 1. The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Utilities Expense were each understated $100. 2. Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were $2,570 and $8,960, respectively. 3. A debit posting to Salaries and Wages Expense of $200 was omitted. 4. A $1,000 cash dividend was debited to Common Stock for $1,000 and credited to Cash for $1,000. 5. A $520 purchase of supplies on account was debited to Equipment for $520 and credited to Cash for $520. 6. A cash payment of $450 for advertising was debited to Advertising Expense for $45 and credited to Cash for $45. 7. A collection from a customer for $420 was debited to Cash for $420 and credited to Accounts Payable for $420. Pre bal LO
P2-4A The trial balance of Dominic Company shown below does not balance. DOMINIC COMPANY Trial Balance May 31, 2015 Cash Accounts Receivable Prepaid Insurance Equipment Accounts Payable Unearned Service Revenue Common Stock Debit $ 3,850 700 12,000 560 Service Revenue 8,690 Salaries and Wages Expense 4,200 Advertising Expense Utilities Expense 800 $30,800 Credit $ 2,750 4,500 11,700 1,100 $20,050 Your review of the ledger reveals that each account has a normal balance. You also discover the following errors. 1. The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Utilities Expense were each understated $100. 2. Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were $2,570 and $8,960, respectively. 3. A debit posting to Salaries and Wages Expense of $200 was omitted. 4. A $1,000 cash dividend was debited to Common Stock for $1,000 and credited to Cash for $1,000. 5. A $520 purchase of supplies on account was debited to Equipment for $520 and credited to Cash for $520. 6. A cash payment of $450 for advertising was debited to Advertising Expense for $45 and credited to Cash for $45. 7. A collection from a customer for $420 was debited to Cash for $420 and credited to Accounts Payable for $420. Pre bal LO
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Aa3
Transcribed Image Text:balance as of January
P2-4A The trial balance of Dominic Company shown below does not balance.
DOMINIC COMPANY
Trial Balance
May 31, 2015
Cash
Accounts Receivable
Prepaid Insurance
Equipment
Accounts Payable
Unearned Service Revenue
Common Stock
Service Revenue
Salaries and Wages Expense
Advertising Expense
Utilities Expense
Debit
$ 3,850
700
12,000
560
8,690
4,200
800
$30,800
Credit
$ 2,750
4,500
11,700
1,100
$20,050
Your review of the ledger reveals that each account has a normal balance. You
discover the following errors.
1. The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Utilities Expense
were each understated $100.
2. Transposition errors were made in Accounts Receivable and Service Revenue. Based on
postings made, the correct balances were $2,570 and $8,960, respectively.
3. A debit posting to Salaries and Wages Expense of $200 was omitted.
4. A $1,000 cash dividend was debited to Common Stock for $1,000 and credited to Cash
for $1,000.
5. A $520 purchase of supplies on account was debited to Equipment for $520 and credited
to Cash for $520.
6. A cash payment of $450 for advertising was debited to Advertising Expense for $45 and
credited to Cash for $45.
7. A collection from a customer for $420 was debited to Cash for $420 and credited to
Accounts Payable for $420.
Prepa
balan
(LO 7
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education