Question

An inexperienced bookkeeper prepared the following trial balance for Philip
Browning, M.D., as of December 31, 20XX. You have discovered the following
errors in your review of the accounting records and need to prepare a
corrected trial balance.
Philip Browning, M.D.
Trial Balance
December 31, 20XX
Debit Credit
Cash 17,500
Medical Supplies 600
Medical Equipment 6,000
Accounts Payable 4,000
Philip Browning, Capital 30,000
Philip Browning, Drawing 1,000
Medical Fees 7,000
Rent Expense 2,500
Salaries Expense 2,000
Utilities Expense 1,000
Miscellaneous Expense 400
Totals 31,000 41,000
Errors discovered:
a. Cash is understated by $3,000.
b. The doctor’s capital account is overstated by $4,000.
c. A withdrawal of $2,000 cash by the doctor for personal use was correctly journalized
but only partially posted. The bookkeeper posted the credit portion of the entry but
failed to post the debit portion.
d. A purchase of medical equipment for $1,000 on account was posted as a credit to
the Accounts Payable account, but the bookkeeper failed to post the debit portion
of the journal entry.

Answer 1

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Philip Browning, M.D
Trial Balance
Account Titles	Incorrect- Debit	Incorrect- Credit	Corrections- Debit	Corrections- Credit	Corrected - Debit	Corrected -Credit
Cash	17,500.00		3,000.00		20,500.00
Medical Supplies	600.00				600.00
Medical Equipment	6,000.00		1,000.00		7,000.00
Accounts Payable		4,000.00				4,000.00
Philip Browning, Capital		30,000.00	4,000.00			26,000.00
Philip Browning, Drawing	1,000.00		2,000.00		3,000.00
Medical Fees		7,000.00				7,000.00
Rent Expense	2,500.00				2,500.00
Salaries Expense	2,000.00				2,000.00
Utilities Expense	1,000.00				1,000.00
Miscellaneous Expense	400.00				400.00
Total	31,000.00	41,000.00	10,000.00	-	37,000.00	37,000.00