The following trial balance for Kids Play does not balance and the owner is concerned and has passed it to you for review and adjustments where applicable: Trial BalanceJune 30th, 2013 Account Debit CreditCash 6,600Accounts receivable 8,000Supplies 600Motor vehicle 89,000Accounts payable 55,000Marlon Morgan: Capital 50,700Marlon Brown: Withdrawal 2,300Service revenue 4,500Salary 4,100Rent 800 .111,400 110,200You have now been presented with the following list of errors and have been asked toprepare the adjusted trial balance: (journal entries are not required)a. Cash was understated by $2,000b. A $1,000 debit to accounts receivable was posted as a credit.c. A $1,400 purchase of supplies on account was omitted from thecompany’s books.d. Motor Vehicle cost should have been $84,300 instead of $89,000e. Salary expense was overstated by $500

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following trial balance for Kids Play does not balance and the owner is concerned and has passed it to you for review and adjustments where applicable:

Trial Balance
June 30th, 2013

Account Debit Credit
Cash 6,600
Accounts receivable 8,000
Supplies 600
Motor vehicle 89,000
Accounts payable 55,000
Marlon Morgan: Capital 50,700
Marlon Brown: Withdrawal 2,300
Service revenue 4,500
Salary 4,100
Rent 800 .
111,400 110,200

You have now been presented with the following list of errors and have been asked to
prepare the adjusted trial balance: (journal entries are not required)
a. Cash was understated by $2,000
b. A $1,000 debit to accounts receivable was posted as a credit.
c. A $1,400 purchase of supplies on account was omitted from the
company’s books.
d. Motor Vehicle cost should have been $84,300 instead of $89,000
e. Salary expense was overstated by $500

 

 
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