The trial balance for Finders Company does not balance and the information as follows has been presented: Finders Company Trial Balance February 29, 2020 Debit Credit Account Cash Accounts receivable Supplies Equipment Computers Accounts payable Notes payable Wright, Capital Wright, Drawing Service revenue Salary Expense Rent expense Advertising expense Utilities expense Total 6,300 6,000 400 22,300 49,000 2,800 18,500 50,000 4,000 4,100 1,400 800 900 800 75,400 91,900 The following errors were detected: 1. The cash balance is overstated by $5,000. 2. Rent expense of $340 was erroneously posted as a credit rather than a debit. 3. A $6,800 credit to Service revenue was not posted. 4. A $400 debit to Accounts receivable was posted as $40. 5. The balance of Utilities expense is understated by $70. 6. A $900 purchase of supplies on account was neither journalized nor posted. 7. Equipment should be $16,490. Requirement 1. Prepare the corrected trial balance on February 29, 2020. Journal entries are not required. 2. Prepare the company's financial statements for the month of February 2020.

The trial balance for Finders Company does not balance and the information as follows has been presented: Finders Company Trial Balance February 29, 2020 Debit Credit Account Cash Accounts receivable Supplies Equipment Computers Accounts payable Notes payable Wright, Capital Wright, Drawing Service revenue Salary Expense Rent expense Advertising expense Utilities expense Total 6,300 6,000 400 22,300 49,000 2,800 18,500 50,000 4,000 4,100 1,400 800 900 800 75,400 91,900 The following errors were detected: 1. The cash balance is overstated by $5,000. 2. Rent expense of $340 was erroneously posted as a credit rather than a debit. 3. A $6,800 credit to Service revenue was not posted. 4. A $400 debit to Accounts receivable was posted as $40. 5. The balance of Utilities expense is understated by $70. 6. A $900 purchase of supplies on account was neither journalized nor posted. 7. Equipment should be $16,490. Requirement 1. Prepare the corrected trial balance on February 29, 2020. Journal entries are not required. 2. Prepare the company's financial statements for the month of February 2020.

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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