Question

The debit and credit totals are not equal as a result of the following errors:

A.	The cash entered on the trial balance was understated by $5,500.
B.	A cash receipt of $5,400 was posted as a debit to Cash of $6,300.
C.	A debit of $10,400 to Accounts Receivable was not posted.
D.	A return of $147 of defective supplies was erroneously posted as a $1,470 credit to Supplies.
E.	An insurance policy acquired at a cost of $1,250 was posted as a credit to Prepaid Insurance.
F.	The balance of Notes Payable was understated by $19,300.
G.	A credit of $5,200 in Accounts Payable was overlooked when determining the balance of the account.
H.	A debit of $6,800 for dividends was posted as a credit to Retained Earnings.
I.	The balance of $56,100 in Rent Expense was entered as $51,600 in the trial balance.
J.	Gas, Electricity, and Water Expense, with a balance of $31,727, was omitted from the trial balance.

	Required:
1.	Prepare a corrected unadjusted trial balance as of May 31, 2018.
2.	Does the fact that the unadjusted trial balance in (1) is balanced mean that there are no errors in the accounts? The Lexington Group UNADJUSTED TRIAL BALANCE May 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 16,200.00 2 Accounts Receivable 35,100.00 3 Supplies 7,500.00 4 Prepaid Insurance 2,100.00 5 Equipment 196,100.00 6 Notes Payable 97,700.00 7 Accounts Payable 27,000.00 8 Common Stock 35,000.00 9 Retained Earnings 94,700.00 10 Dividends 55,300.00 11 Fees Earned 454,850.00 12 Wages Expense 269,700.00 13 Rent Expense 51,600.00 14 Advertising Expense 26,000.00 15 Miscellaneous Expense 5,500.00 16 Totals 665,100.00 709,250.00 1. Prepare a corrected unadjusted trial balance as of May 31, 2018. The Lexington Group UNADJUSTED TRIAL BALANCE May 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Accounts Receivable 3 Supplies 4 Prepaid Insurance 5 Equipment 6 Notes Payable 7 Accounts Payable 8 Common Stock 9 Retained Earnings 10 Dividends 11 Fees Earned 12 Wages Expense 13 Rent Expense 14 Advertising Expense 15 Gas, Electricity, and Water Expense 16 Miscellaneous Expense 17 Totals

Answer 1

1		ACCOUNT TITLE	DEBIT	CREDIT
	1	Cash	20,800.00
	2	Accounts Receivable	45,500.00
	3	Supplies	8,823.00
	4	Prepaid Insurance	4,600.00
	5	Equipment	196,100.00
	6	Notes Payable		117,000.00
	7	Accounts Payable		32,200.00
	8	Common Stock		35,000.00
	9	Retained Earnings		87,900.00
	10	Dividends	62,100.00
	11	Fees Earned		454,850.00
	12	Wages Expense	269,700.00
	13	Rent Expense	56,100.00
	14	Advertising Expense	26,000.00
	15	Gas, Electricity, and Water Expense	31,727.00
	16	Miscellaneous Expense	5,500.00
	17	Totals	726,950.00	726,950.00
2	No, The trial balance indicated only that balance in debit and credit are equal.
	Any error that have an impact of equal debit and credit will not be corrected.