Question

	Tech Support Services has the following unadjusted trial balance as of December 31, 2017
	Cash				25,550
	Accounts receivable				44,050
	Supplies				6,660
	Prepaid insurance				3,600
	Equipment				162,000
	Notes payable						75,000
	Accounts payable						13,200
	Johnny Tremain, Capital						101,850
	Johnny Tremain, Drawings				33,000
	Fee revenue						534,000
	Wages expense				306,000
	Rent expense				62,550
	Advertising expense				23,850
	Utilities expense				17,000
					684,260		724,050
	The following errors are reflected in the trial balance:
a)	The cash entered on the trial balance was overstated by $8,000.
b)	A cash receipt of $4,100 was posted as a debit to Cash of $1,400.
c)	A debit of $12,350 to Accounts Receivable was not posted.
d)	A return of $235 of defective supplies was erroneously posted as a $325 credit to Supplies.
e)	An insurance policy acquired at a cost of $3,000 was posted as a credit co Prepaid insurance.
f)	The balance of Notes Payable was overstated by $21,000.
g)	A credit of $3,450 in Accounts payable was overlooked when the balance of the account was determined.
h)	A debit of $6,000 for a withdrawal by the owner was posted as a debit to the Capital account.
i)	The balance of $28,350 in Advertising expense is entered as $23,850 in the trial balance.
j)	Miscellaneous expense with a balance of $4,600 was omitted from the trial balance.
Instructions:
	Prepare a corrected unadjusted trial balance as of December 31, 2017.

Answer 1

		Tech Support services
		Unadjuste Trial Balance December 31st,2017
		Trial Balance		Rectification		Correct Balance
	Particular	Debit	Credit	Debit	Credit
	Cash($25,550-$8000+$2700)	25550		2700	8000	20250
	Accounts Receivable=($44050+$12350	44050		12350		56400
	Supplies=($6660+$90)	6660		90		6750
	Prepaid Insurance($3600+3000+3000)	3600		6000		9600
	Equipment	162000				162000
	Notes Payable=($75000-$21000)		75000	21000			54000
	Accounts Payable=($13200+$3450)		13200		3450		16650
	Johnny Tremain,Capital=($101850+$6000)		101850		6000		107850
	Johnny Tremain,Drawings=($33000+$6000)	33000		6000		39000
	Fee Revenue		534000				534000
	Wages Expense	306000				306000
	Rent Expense	62550				62550
	Advertising Expense=(23850+$4500)	23850		4500		28350
	Utilities Expense	17000				17000
	Miscellaneous Expenses=$4600			4600		4600
	Total	684260	724050	57240	17450	712500	712500
	Explaination
a)	Cash Balance Overstated so we reduce cash by $8000
b)	A Cash less recorded by($4100-$1400)=$2700 so we add $2700 in Cash
C )	$12350 added in Accounts Receivable which is not recorded earlier.
d)	A return of supplies more credited in supplies account by(325-235) =$90 so we add this amount in Supplies.
e)	Insurance policy was purchased by 3000 was wrongly credited instead of debiting,so first we rectify it and then passed
	correct entry.
f)	Note payable overstated by $21000 so reduced the balance of Note Payable.
g)	A credit of $3450 overlooked while recording,so we add this amount in accounts Payable.
h)	Withdrawal of 6000 entered in capital account so we increase the debit balance by drawings and increase capital
	which is wrongly debited.
i)	An advertisement expenses wrogly less debited by $4500 so we add this amount.
j)	Miscellaneous Expenses earlier not recorded so we include this amount as Miscellaneos Expenses.