The following trial balance of Joy McDowell Tutoring Service at May 31, 2018, does not balance:
JOY MCDOWELL TUTORING SERVICE
Trial Balance
31-May-18
Balance
Account Debit Credit
Cash $ 3,000
Accounts receivable 2,000
Supplies 600
Computer equipment 25,800
Accounts payable 11,400
McDowell, capital 11,600
Service revenue 9,800
Salary expense
Rent expense 1,700
700
Utilities expense 500
Total 34,300 32,800
Investigation of the accounting records reveals that the bookkeeper:
a. Recorded a $500 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 $400.
d. Understated McDowell, capital by $600.
Requirement
Prepare the corrected trial balance at May 31, 2018, complete with a heading;
journal entries are not required.

Question

contestada

Respuesta :

akiran007 akiran007 · Answer 1 · 2020-07-22T02:59:36+02:00

Answer:

Total debit $ 34,700

Total Credit $ 34700

Explanation:

JOY MCDOWELL TUTORING SERVICE

Trial Balance

31-May-18

Balance

Account Debit Credit

Cash $ 3,500

Accounts receivable 1500

Supplies 600

Computer equipment 25,800

Accounts payable 12,700

McDowell, capital 12,200

Service revenue 9,800

Salary expense 1,700

Rent expense 700

Utilities expense 900

Total 34,700 34700

a. We change the cash balance to $ 3500 and A/R balance to 1500

b. We add $ 900 in the accounts Payable and change it to 12,700

c. We add $ 400 to utilities and change it to 900.

d. Increase McDowell, capital by $600 and change it to 12,200.

So we get the corrected trial balance having equal debit and credit balance of $ 34,700