This trial balance of Washburn Co. does not balance.
Question # 00383878
Posted By:
Updated on: 09/11/2016 02:00 AM Due on: 09/11/2016
This trial balance of Washburn Co. does not balance.
| WASHBURN CO. Trial Balance June 30, 2017 | ||
| Debit | Credit | |
| Cash | $ 3,090 | |
| Accounts Receivable | $ 3,190 | |
| Supplies | 800 | |
| Equipment | 3,000 | |
| Accounts Payable | 3,686 | |
| Unearned Service Revenue | 1,200 | |
| Common Stock | 9,000 | |
| Dividends | 800 | |
| Service Revenue | 3,480 | |
| Salaries and Wages Expense | 3,600 | |
| Utilities Expense | 910 | |
| Total | $13,500 | $19,256 |
Each of the listed accounts has a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors:
| 1. | Cash received from a customer on account was debited for $760, and Accounts Receivable was credited for the same amount. The actual collection was for $706. |
| 2. | The purchase of a printer on account for $340 was recorded as a debit to Supplies for $340 and a credit to Accounts Payable for $340. |
| 3. | Services were performed on account for a client for $900. Accounts Receivable was debited for $90 and Service Revenue was credited for $900. |
| 4. | A debit posting to Salaries and Wages Expense of $700 was omitted. |
| 5. | A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260. |
| 6. | Payment of a $600 cash dividend to Washburn Co.'s stockholders was debited to Salaries and Wages Expense for $600 and credited to Cash for $600. |
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Rating:
/5
Solution: This trial balance of Washburn Co. does not balance.