Ex. 205
The trial balance of Drysdale Company shown below does not balance.
DRYSDALE COMPANY
Trial Balance
June 30, 2014
———————————————————————————————————————————
Debit Credit
Cash..................................................? 2,600
Accounts Receivable......................................7,600
Supplies...............................................600
Equipment.............................................8,300
Accounts Payable........................................? 9,766
Share Capital-Ordinary....................................1,952
Dividends..............................................1,500
Service Revenue.........................................15,200
Salaries and Wages Expense................................3,800
Maintenance and Repairs Expense............................ 1,600
Totals.................................................?26,000?26,918
An examination of the ledger and journal reveals the following errors:
1.Each of the above listed accounts has a normal balance per the general ledger.
2.Cash of ?170 received from a customer on account was debited to Cash ?710 and credited to Accounts Receivable ?710.
3.A dividend of ?300 was posted as a credit to Dividends, ?300 and credit to Cash ?300.
4.A debit of ?120 was not posted to Salaries and Wages Expense.
5.The purchase of equipment on account for ?700 was recorded as a debit to Maintenance and Repairs Expense and a credit to Accounts Payable for ?700.
6.Services were performed on account for a customer, ?310, for which Accounts Receivable was debited ?310 and Service Revenue was credited ?31.
7.A payment on account for ?225 was credited to Cash for ?225 and credited to Accounts Payable for ?252.
Instructions
Prepare a correct trial balance.
Ex. 206
Some of the following errors would cause the debit and credit columns of the trial balance to have unequal totals. For each of the four cases, state whether the error would cause unequal totals in the trial balance. If the error causes unequal totals, indicate the amount of difference between the columns and state whether the debit or credit is larger. Each case is to be considered independently of the others.
1.A payment of $800 to a creditor was recorded by a debit to Accounts Payable of $80 and a credit to Cash of $800.
2.A $480 payment for a printer was recorded by a debit to Equipment of $48 and a credit to Cash for $48.
3.An account receivable in the amount of $1,500 was collected in full. The collection was recorded by a debit to Cash for $1,500 and a debit to Accounts Payable for $1,500.
4.An account payable was paid by issuing a check for $800. The payment was recorded by debiting Accounts Payable $800 and crediting Accounts Receivable $800.