Reference no: EM131803411

Problem - Corrected Trial Balance

The following trial balance of Oakley Co. does not balance.

OAKLEY CO. Trial Balance JUNE 30, 2012
	Debit	Credit
Cash		$2,870
Accounts Receivable	$3,231
Supplies	800
Equipment	3,800
Accounts Payable		2,666
Unearned Service Revenue	1,200
Common Stock		6,000
Retained Earnings		3,000
Service Revenue		2,380
Salaries and Wages Expense	3,400
Office Expense	940
	$13,371	$16,916

Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.

1. Cash received from a customer on account was debited for $370, and Accounts Receivable was credited for the same amount. The actual collection was for $730.

2. The purchase of a computer printer on account for $500 was recorded as a debit to Supplies for $500 and a credit to Accounts Payable for $500.

3. Services were performed on account for a client for $890. Accounts Receivable was debited for $890 and Service Revenue was credited for $89.

4. A payment of S65 for telephone charges was recorded as a debit to Office Expense for $65 and a debit to Cash for $65.

5. When the Unearned Service Revenue account was reviewed, it was found that $225 of the balance was earned prior to June 30.

6. A debit posting to Salaries and Wages Expense of $670 was omitted.

7. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260.

8. A dividend of $575 was debited to Salaries and Wages Expense for $575 and credited to Cash for $575.

Instructions - Prepare a correct trial balance. (Note: It may be necessary to add one or more accounts to the trial balance.)