Correcting errors in a trial balance
The trial balance of Smart Tots Child Care does not balance.
| SMART TOTS CHILD CARE Trial Balance 31-Aug-12 | ||
| Account | Debit | Credit |
| Cash | $ 6,700 | |
| Accounts receivable | 7,000 | |
| Supplies | 700 | |
| Equipment | 87,000 | |
| Accounts payable | 53,000 | |
| Tilley, capital | 50,500 | |
| Tilley, drawing | 2,400 | |
| Service revenue | 4,700 | |
| Salary expense | 3,600 | |
| Rent expense | 500 | |
| Total | $107,900 | $108,200 |
The following errors are detected:
a. Cash is understated by $1,000.
b. A $4,000 debit to Accounts receivable was posted as a credit.
c. A $1,000 purchase of supplies on account was neither journalized nor posted.
d. Equipment”s cost is $78,500, not $87,000.
e. Salary expense is overstated by $200.
Requirement
1. Prepare the corrected trial balance at August 31, 2012. Journal entries are not required.
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