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The following trial balance of Sunland Co. does not balance. SUNLAND CO. TRIAL BALANCE JUNE 30,...

The following trial balance of Sunland Co. does not balance.

SUNLAND CO.
TRIAL BALANCE
JUNE 30, 2017

Debit

Credit
Cash $3,307
Accounts Receivable $3,668
Supplies 1,237
Equipment 4,237
Accounts Payable 3,103
Unearned Service Revenue 1,637
Common Stock 6,437
Retained Earnings 3,437
Service Revenue 2,817
Salaries and Wages Expense 3,837
Office Expense 1,377
Totals

$15,993

$19,101


Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.

1. Cash received from a customer on account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750.
2. The purchase of a computer printer on account for $937 was recorded as a debit to Supplies for $937 and a credit to Accounts Payable for $937.
3. Services were performed on account for a client for $890. Accounts Receivable was debited for $890 and Service Revenue was credited for $89.
4. A payment of $502 for telephone charges was recorded as a debit to Office Expense for $502 and a debit to Cash for $502.
5. When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to $762 was performed prior to June 30 (related to Unearned Service Revenue).
6. A debit posting to Salaries and Wages Expense of $1,107 was omitted.
7. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260.
8. A dividend of $1,012 was debited to Salaries and Wages Expense for $1,012 and credited to Cash for $1,012.


Prepare a correct trial balance.

Solutions

Expert Solution

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It seems Cash balance in question should be Debit and Unearned service revenue in question should be credit. Solved based on this assumption. Otherwise with the given details, this is not possible
Trx 1 Trx 2 Trx 3 Trx 4 Trx 5 Trx 6 Trx 7 Trx 8 Correct
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash $         3,307 $        750 $        570 $    1,004 $    2,483
Accounts Receivable $         3,668 $        570 $        750 $    3,488
Supplies $         1,237 $        937 $        300
Equipment $         4,237 $        937 $    5,174
Accounts Payable $         3,103 $        466 $    2,637
Unearned Service Revenue $         1,637 $        762 $        875
Common Stock $         6,437 $    6,437
Retained Earning $         3,437 $    1,012 $    2,425
Service Revenue $         2,817 $           89 $        890 $        762 $    4,380
Salaries and Wages Expense $         3,837 $    1,107 $    1,012 $    3,932
Office Expense $         1,377 $    1,377
Total $       17,663 $       17,431 $     1,320 $     1,320 $        937 $        937 $           89 $        890 $           -   $    1,004 $        762 $        762 $    1,107 $           -   $        466 $           -   $    1,012 $    1,012 $ 16,754 $ 16,754

ekkarill92 answered 1 year ago
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