4. The following trial balance was prepared from the general ledger of Hal's Auto Repair for...

4. The following trial balance was prepared from the general ledger of Hal's Auto Repair for period ended October 31.

	Original Trial Balance		Amendments		*Corrected Trial Balance*
	Debit($)	Credit($)	Dedit($)	Credit($)	Dr.	Cr.
Cash	$975
Accounts receiable	3,800
Supplies	500
Repair equipment	13,000
Office equipment	6,600
Accounts payable		$4,510
Common stock		10,000
Retained earnings		13,000
Dividends	4,200
Repair fees earned		10,875
Supplies expense	8,600
Totals	$37,675	$38,385

Since the trial balance did not balance, you examined the accounting records and found the following errors :
a. A purchase of supplies on account for $245 was posted as a debit to Supplies and as a debit to Accounts Payable.
b. An investment of $500 cash by the owner was debited to Common Stock and credited to Cash.
c. In computing the balance of the Accounts Receivable account, a debit of $600 was omitted from the computation.
d. A debit of $300 to the Dividends account was posted as a credit.
e. Office equipment purchased for $800 was posted to the Repair Equipment account.
f. An entire transaction was not posted to the general ledger. The transaction involved the receipt of $125 cash at the time repair services were performed.

Required: Prepare a corrected trial balance for the Hal's Auto Repair as of October 31. (Use the table above).

Expert Solution

Corrected trial balance for the Hal's Auto Repair as of October 31 is as prepared below:

Original Trial Balance			Amendments			Corrected Trial Balance
	Debit($)	Credit($)		Dedit($)	Credit($)	Dr.	Cr.
Cash	975		f.	125		1,100	-
Accounts receiable	3,800		c.	600		4,400	-
Supplies	500		a.		490	500	490
Investment			b.	500		500	-
Repair equipment	13,000		e.		800	13,000	800
Office equipment	6,600		e.	800		7,400	-
Accounts payable		4,510				-	4,510
Common stock		10,000	b.		500	-	10,500
Retained earnings		13,000				-	13,000
Dividends	4,200		d.	600		4,800	-
Repair fees earned		10,875	f.		125	-	11,000
Supplies expense	8,600					8,600	-
Totals	37,675	38,385				40,300	40,300

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