Correcting errors in a trial balance
The trial balance for Treasure Hunt Exploration Company does not balance.
| TREASURE HUNT EXPLORATION COMPANY Trial Balance 29-Feb-12 | ||
| Account | Debit | Credit |
| Cash | $ 6,300 | |
| Accounts receivable | 6,000 | |
| Supplies | 400 | |
| Exploration equipment | 22,300 | |
| Computers | 49,000 | |
| Accounts payable | 2,800 | |
| Note payable | 18,500 | |
| Jones, capital | 50,000 | |
| Jones, drawing | 4,000 | |
| Service revenue | 4,100 | |
| Salary expense | $1,400 | |
| Rent expense | 800 | |
| Advertising expense | 900 | |
| Utilities expense | 800 | |
| Total | $91,900 | $75,400 |
The following errors were detected:
a. The cash balance is overstated by $5,000.
b. Rent expense of $340 was erroneously posted as a credit rather than a debit.
c. A $6,800 credit to Service revenue was not posted.
d. A $400 debit to Accounts receivable was posted as $40.
e. The balance of Utilities expense is understated by $70.
f. $900 purchase of supplies on account was neither journalized nor posted.
g. Exploration equipment should be $16,490.
Requirement
1. Prepare the corrected trial balance at February 29, 2012. Journal entries are not required.
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