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The following trial balance of Whispering Winds Corp. does not balance.

The following trial balance of Whispering Winds Corp. does not balance.

FINANCIAL ACCOUNTING
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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1. 2. 3. 4. 5. The following trial balance of Whispering Winds Corp. does not balance. Whispering Winds Corp. Trial balance May 31, 2022 6. Cash Accounts Receivable Prepaid Insurance Equipment Accounts Payable Unearned Service Revenue Common Stock Service Revenue Salaries and Wages Expense Advertising Expense Utilities Expense 7. Debit $5,260 870 13,410 730 8,680 4,370 800 Your review of the ledger reveals that each account has a normal balance. You also discover the following errors. The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Utilities Expense were each understated $100, Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were $2,470 and $8,860, respectively. Credit $2,740 5,910 13,110 930 $34,120 $22,690 A debit posting to Salaries and Wages Expense of $200 was omitted. A $1,000 cash dividend was debited to Common Stock for $1,000 and credited to Cash for $1,000. A $480 purchase of supplies on account was debited to Equipment for $480 and credited to Cash for $480. A cash payment of $670 for advertising was debited to Advertising Expense for $67 and credited to Cash for $67. A collection from a customer for $570 was debited to Cash for $570 and credited to Accounts Payable for $570.
Transcribed Image Text:1. 2. 3. 4. 5. The following trial balance of Whispering Winds Corp. does not balance. Whispering Winds Corp. Trial balance May 31, 2022 6. Cash Accounts Receivable Prepaid Insurance Equipment Accounts Payable Unearned Service Revenue Common Stock Service Revenue Salaries and Wages Expense Advertising Expense Utilities Expense 7. Debit $5,260 870 13,410 730 8,680 4,370 800 Your review of the ledger reveals that each account has a normal balance. You also discover the following errors. The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Utilities Expense were each understated $100, Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were $2,470 and $8,860, respectively. Credit $2,740 5,910 13,110 930 $34,120 $22,690 A debit posting to Salaries and Wages Expense of $200 was omitted. A $1,000 cash dividend was debited to Common Stock for $1,000 and credited to Cash for $1,000. A $480 purchase of supplies on account was debited to Equipment for $480 and credited to Cash for $480. A cash payment of $670 for advertising was debited to Advertising Expense for $67 and credited to Cash for $67. A collection from a customer for $570 was debited to Cash for $570 and credited to Accounts Payable for $570.
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.) Cash Accounts Receivable Prepaid Insurance Equipment Accounts Payable Unearned Service Revenue Common Stock Service Revenue Supplies Supplies Salaries and Wages Expense Advertising Expense Utilities Expense Dividends Totals Whispering Winds Corp. Trial balance May 31, 2022 Debit 5260 2740 870 13410 480 $ 480 4370 930 800 1000 29860 $ Credit 5910 730 13110 8680 28430
Transcribed Image Text: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.) Cash Accounts Receivable Prepaid Insurance Equipment Accounts Payable Unearned Service Revenue Common Stock Service Revenue Supplies Supplies Salaries and Wages Expense Advertising Expense Utilities Expense Dividends Totals Whispering Winds Corp. Trial balance May 31, 2022 Debit 5260 2740 870 13410 480 $ 480 4370 930 800 1000 29860 $ Credit 5910 730 13110 8680 28430
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