Reference no: EM131312071

Objective : Construct and use a trial balance.

The trial balance of Amanda's Candies, Inc., at September 30, 2014, does not balance:

Cash...............................	$ 14,200
Accounts receivable.............	12,800
Inventory.........................	17,300
Supplies...........................	400
Land...............................	41,000
Accounts payable................		$11,600
Common stock.............		47,100
Sales revenue....................		33,800
Salary expense..................	2,200
Rent expense....................	1,000
Utilities expense.................	1,000
Total...............................	$89,900	$92,500

The accounting records hold the following errors:

a. Recorded a $200 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 $640.

d. Understated Common Stock by $200.

e. Omitted Insurance Expense of $3,700 from the trial balance.