Services were performed on account for a client for $ 800. Accounts Receivable was debited for $ 800, and Service Revenue was credited for $ 80. 3. 4. A debit posting to Salaries and Wages Expense of $ 800 was omitted. 5. A payment of a balance due for $ 407 was credited to Cash for $ 407 and credited to Accounts Payable for $ 470. The withdrawal of $ 512 cash for Sandhu's personal use was debited to Salaries and Wages Expense for $512 and credited to Cash for $ 512. 6. Prepare a correct trial balance. (Hint: It helps to prepare the correct journal entry for the transaction described and compare it to the mistake made.) PINA COLADA CO. Trial Balance

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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Question
Finish the trial balance
Tor $ 800 anua credit to ACCOUNTS Payable Tor 80O.
Services were performed on account for a client for $ 800. Accounts Receivable was
debited for $ 800, and Service Revenue was credited for $ 80.
3.
4.
A debit posting to Salaries and Wages Expense of $ 800 was omitted.
5.
A payment of a balance due for $ 407 was credited to Cash for $ 407 and credited to
Accounts Payable for $ 470.
The withdrawal of $ 512 cash for Sandhu's personal use was debited to Salaries and
Wages Expense for $ 512 and credited to Cash for $ 512.
6.
Prepare a correct trial balance. (Hint: It helps to prepare the correct journal entry for the
transaction described and compare it to the mistake made.)
PINA COLADA CO.
Trial Balance
Debit
Totals
Transcribed Image Text:Tor $ 800 anua credit to ACCOUNTS Payable Tor 80O. Services were performed on account for a client for $ 800. Accounts Receivable was debited for $ 800, and Service Revenue was credited for $ 80. 3. 4. A debit posting to Salaries and Wages Expense of $ 800 was omitted. 5. A payment of a balance due for $ 407 was credited to Cash for $ 407 and credited to Accounts Payable for $ 470. The withdrawal of $ 512 cash for Sandhu's personal use was debited to Salaries and Wages Expense for $ 512 and credited to Cash for $ 512. 6. Prepare a correct trial balance. (Hint: It helps to prepare the correct journal entry for the transaction described and compare it to the mistake made.) PINA COLADA CO. Trial Balance Debit Totals
The following trial balance of Pina Colada Co. does not balance.
Pina Colada CO.
Trial Balance
June 30, 2020
Debit
Credit
Cash
$ 2,020
Accounts Receivable
$ 2,530
Supplies
1,250
Equipment
2,400
Accounts Payable
4,277
Unearned Service Revenue
1,100
Owner's Capital
7,800
Owner's Drawings
2,688
Service Revenue
2,580
Salaries and Wages Expense
3,112
Utilities Expense
800
$ 13,880
$ 16,677
Each of the listed accounts has a normal balance per the general ledger. An examination of the
ledger and journal reveals the following errors.
1.
Cash received from a customer in payment of its account was debited for $ 960, and
Accounts Receivable was credited for the same amount. The actual collection was for
$ 690.
2.
The purchase of a computer on account for $ 800 was recorded as a debit to Supplies
for $ 800 and a credit to Accounts Payable for $ 800.
Transcribed Image Text:The following trial balance of Pina Colada Co. does not balance. Pina Colada CO. Trial Balance June 30, 2020 Debit Credit Cash $ 2,020 Accounts Receivable $ 2,530 Supplies 1,250 Equipment 2,400 Accounts Payable 4,277 Unearned Service Revenue 1,100 Owner's Capital 7,800 Owner's Drawings 2,688 Service Revenue 2,580 Salaries and Wages Expense 3,112 Utilities Expense 800 $ 13,880 $ 16,677 Each of the listed accounts has a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors. 1. Cash received from a customer in payment of its account was debited for $ 960, and Accounts Receivable was credited for the same amount. The actual collection was for $ 690. 2. The purchase of a computer on account for $ 800 was recorded as a debit to Supplies for $ 800 and a credit to Accounts Payable for $ 800.
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