Reference no: EM132385562

Question

On December 31, the balances in the General Ledger accounts of Pancho Company resulted in the following totals:

Assets = $517,600 Liabilities = $323,400 Equity = $200,500

Total assets do not equal total liabilities plus equity because the following errors were made:

• Supplies of $500 were on hand but were not included in assets because all purchases were debited to Supplies Expense.

• Credit services revenue of $15,700 were posted to the Services Revenue account as $17,500. The Accounts Receivable account was posted correctly.

• Equipment purchased on credit for $51,600 was incorrectly posted to Notes Payable as $56,100. No error was made in the Equipment account.

Find the correct balances in the asset, liability, equity accounts.