Problem-4: The Recording Process

The trial balance of Avtar Sandhu Co. Shown below does not balance

Each of the listed accounts has a normal balance per the general ledger. An examination of the ledger and Journal reveals the followings errors:

1. Cash received from a customer in payment of its account was debited for $580, and Accounts Receivable was credited for the same amount. The actual collection was for $850
2. the purchase of a computer on account for $710 was recorded as a debit to Supplies for $710 and credit to Accounts Payable for $710.
3. Services were performed on account for a client for $980. Accounts Receivable was debited for $980, and Service Revenue was credited for $98.
4. A debit posting to Salaries and Wages Expenses of $700 was omitted.
5. A payment of a balance due for $306 was credited to Cash for $306 and credited to Accounts Payable for $360.
6. The withdrawal of $600 cash for Sandhu's personal use was debited to Salaries and Wages Expense for $600 and credited to Cash for $600.

Instructions

Prepare a correct trial balance.

Answer

Correct Trial balance = $15,462