Correcting errors in a trial balance
The following trial balance of Joy McDowell Tutoring Service at May 31, 2012, does not balance:
| JOY MCDOWELL TUTORING SERVICE Trial Balance 31-May-12 | ||
| Balance | ||
| Account | Debit | Credit |
| Cash | $ 3,000 | |
| Accounts receivable | 2,000 | |
| Supplies | 600 | |
| Computer equipment | 25,800 | |
| Accounts payable | 11,400 | |
| McDowell, capital | 11,600 | |
| Service revenue | 9,800 | |
| Salary expense | ||
| Rent expense | 1,700 | |
| 700 | ||
| Utilities expense | 500 | |
| Total | 34,300 | 32,800 |
Investigation of the accounting records reveals that the bookkeeper:
a. Recorded a $500 cash revenue transaction by debiting Accounts receivable. The credit entry was correct.
b. Posted a $1,000 credit to Accounts payable as $100.
c. Did not record utilities expense or the related account payable in the amount of $400.
d. Understated McDowell, capital by $600.
Requirement
1. Prepare the corrected trial balance at May 31, 2012, complete with a heading;
journal entries are not required.
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