Reference no: EM13538798

The debit and credit totals of the following trial balance are unequal as a result of the following errors. Prepare a corrected trial balance as of June 30 of the current year.

Cash	$26,500
Accounts Receivable	37,775
Prepaid Insurance	800
Office Supplies	960
Accounts Payable		$11,410
Notes Payable		6,000
Capital Stock		7,500
Retained Earnings		25,340
Dividends		2000
Fees Earned		126,500
Wages Expense	84,100
Rent Expense	5,500
Advertising Expense	3,900
Automobile Expense	275
Miscellaneous Expense	1,550
Totals	$161,360	$178,750

Errors noted:

a) The balance of cash was understated by $750. (Cash +750)

b) A cash receipt of $2,100 was posted as a debit to Cash of $1,200. (Cash +900) c)

c) A debit of $3,000 for a cash dividend was posted as a credit to Retained Earnings. (Dividends +3,000; RE -3,000)

d) The balance of $2,750 in Automobile Expense was entered in the trial balance as $275. (Auto Exp. = 2,750)

e) A debit of $975 to Accounts Receivable was not posted. (A/R +975)

f) A return of $125 of defective supplies was erroneously posted as a $215 credit to Supplies. (Supplies +90)

g) An insurance policy acquired at a cost of $150 was posted as a credit to Prepaid Insurance. (Prepaid Ins. +300)

h) A debit of $900 in Accounts Payable was overlooked when determining the balance of the account. (A/P -900)

i) The balance of Notes Payable was overstated by $5,000. (Notes Payable -5,000)

j) The balance of cash was understated by $750. (Cash +750)

k) A cash receipt of $2,100 was posted as a debit to Cash of $1,200. (Cash +900)