Question
The following trial balance was prepared from the ledgeraccounts of Sanchez Company
|
Account Title |
Debit |
Credit |
|
|
|
|
|
Cash |
68,900 |
|
|
Accounts Receivable |
30,000 |
|
|
Supplies |
1,800 |
|
|
Prepaid Insurance |
3,600 |
|
|
Land |
|
12,000 |
|
Accounts Payable |
|
9,600 |
|
Common Stock |
|
100,000 |
|
Retained Earnings |
|
27,510 |
|
Dividends |
8,000 |
|
|
Service Revenue |
|
60,000 |
|
Rent Expense |
9,600 |
|
|
Salaries Expense |
31,500 |
|
|
Operating Expenses |
32,400 |
|
|
|
|
|
|
TOTALS |
$185,800 |
$209, 110 |
When the trial balance failed to balance, the accountantreviewed the records and discovered the following errors:
1. The company received $560 as payemnt for services rendered.The credit to Service Revenue was recorded correctly, but the debitto Cash was recorded as $650.
2. A $900 receipt of cash that was received from a customer onaccounts receivable was not recorded.
3. A $600 purchase of supplies on account was properly recordedas a debit to the Supplies account. However, the credit to AccountsPayable was not recorded.
4. Land valued at $12,000 was contributed to the business inexchange for common stock. The entry to record the transaction wasrecorded as a $12,000 credit to both the Land account and theCommon Stock account.
5. A $500 rent payment was properly recorded as a credit toCash. However, the Salaries Expense account was incorrectly debitedfor $500
REQUIRED: Based on this information, prepare acorrected trial balance for Sanchez Comapny
