Chapter 2, Problem 2.33AP

Correcting errors in a trial balance

The trial balance of Creative Child Care does not balance.

The following errors are detected:

1. a. Cash is understated by $ 1,400.
2. b. A $3,900 debit to Accounts Receivable was posted as a credit.
3. c. A $1,300 purchase of office supplies on account was neither journalized nor posted.
4. d. Equipment was incorrectly transferred from the ledger as $84,300. It should have been transferred as $76,500.
5. e. Salaries Expense is overstated by $300.
6. f. A $200 cash payment for advertising expense was neither journalized nor posted.
7. g. A $ 240 cash dividend was incorrectly journalized as $2,400.
8. h. Service Revenue was understated by $4,500.
9. i. A 12-month insurance policy was posted as a $1,800 credit to Prepaid Insurance. Cash was posted correctly.

Prepare the corrected trial balance as of August 31, 2017. Journal entries are not required.

Total Debits $115,900