Chapter 2, Problem P2.33APGA

Correcting errors in a trial balance
Learning Objective 4
Total Debits $123,250
The trail balance of Beautiful Tots Child Care does not balance.

BEAUTIFUL TOTS CHILD CARE Trial Balance August 31, 2018
Balance
Account Title	Debit	Credit
Cash	$7,900
Accounts Receivable	6,700
Office Supplies	1,000
Prepaid Insurance	300
Equipment	91,500
Accounts Payable		$3,400
Notes Payable		45,000
Trumball, Capital		57,000
Trumball, Withdrawals	5,000
Service Revenue		12,350
Rent Expense	4,400
Rent Expense	750
Total	$117,550	$117,750

The following errors are detected:
a. Cash is understated by $1,500.
b. A $4,100 debn to Accounts Receivable was posted as a credit.
c. A $1,400 purchase of of?ce supplies on account was neitherjournalized nor posted.
d. Equipment was incorrectly transferred from the ledger as $91,500. It should have been transferred as $83,000.
e. Salaries Expense is overstated by $700.
f. A $300 cash payment for advertising expense was neither journalized nor posted.
g. A $200 owner's withdrawal of cash was incorrectlyjournalized as $2,000.
h. Service Revenue was understated by $4,100.
i. A 12-month insurance policy was posted as a $1,900 credit to Prepaid Insurance. Cash was posted correctly.
Prepare the corrected trial balance as of August 31, 2018. Journal entries are not required.